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[[Problem]] Applying the Valuation Principle You

[[Problem]] Applying the Valuation Principle You are the operations manager at your firm. Due to a pre-existing contract, you have the opportunity to acquire 200 barrels of oil and 3000 pounds of copper for a total of $12,000. The current competitive market price of oil is $50 per barrel and for copper is $2 per pound. You are not sure you need all of the oil and copper, and are concerned that the value of both commodities may fall in the future. Should you take this opportunity?

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