Answer:
Economic order quantity (EOQ)= 49 units
Explanation:
Giving the following information:
Demand= 480 units per year
Order cost= $10
Holding cost= 10*0.4= $4
<u>Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs.</u>
Economic order quantity (EOQ)= √[(2*D*S)/H]
D= Demand in units
S= Order cost
H= Holding cost
Economic order quantity (EOQ)= √[(2*480*10) / 4]
Economic order quantity (EOQ)= √(2,400)
Economic order quantity (EOQ)= 49 units
If Felipe gets his inheritance then he and Mary can clinch their deal successfully and according to the terms they have worked out so that he will owe her $99,000 and she will get this money and he will get presumably a nice house.
Answer:
the cash paid as on June 24 is $9,424
Explanation:
The computation of the cash paid as on June 24 is as follows:
= Merchandise cost + Freight charge - Purchase returns - Discount Eligible at 3%
= $10,000 + $500 - $800 - [($10,000 - $800) × 0.03]
= $10,000 + $500 - $800 - $276
= $9,424
Hence, the cash paid as on June 24 is $9,424
Answer:
4.17 years
Explanation:
For Bond,
Let's take Bond Par Value = $1,000
Coupon Rate = 9%
YTM = 8.5%
Current Yield = Annual Dividend/Current Price
0.0885 = 90/Bond Price
Bond Price = $1,016.95
Calculating Time left to Maturity,
Using TVM Calculation,
T = [FV = 1000, PV = 1016.95, PMT = 90, I = 0.085]
T = 4.17 years
So,
Time left to Maturity = 4.17 years
Answer:
The total cost of the loan with simple interest $2269.8 is less than the loan with compound interest $2299.12.
Explanation:
Simple Interest (I) = Principal (Loan)×Time×Rate ÷ 100
Loan = $1800
Time = 3 years
Rate = 8.7%
I = 1800×3×8.7/100 = $469.8
Total cost of loan with simple Interest = loan + simple interest = $1800 + $469.8 = $2269.8
Compound interest = [Loan(1+r)^n] - Loan
Loan = $1800
r is annual interest rate = 8.5% = 0.085
n is duration of the loan = 3 years
Compound interest = [1800(1+0.085)^3] - 1800 = 2299.12 - 1800 = $499.12
Loan with compound interest = 1800 + 499.12 = $2299.12
