Suppose the current market price of corn is $3.21 per bushel. Your firm has a technology that can convert 1 bushel of corn to 3 gallons of ethanol. If the cost of conversion is $1.78 per bushel, at what market price of ethanol does conversion become attractive?

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Suppose the current market price of corn is $3.21 per bushel. Your firm has a technology that can convert 1 bushel of corn to 3 gallons of ethanol. If the cost of conversion is $1.78 per bushel, at what market price of ethanol does conversion become attractive?

Related Book For  answer-question

Basic Finance An Introduction to Financial Institutions Investments and Management

10th edition

Authors: Herbert B. Mayo

ISBN: 978-1111820633