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3 years ago

The opportunity cost of holding money

1 answer:

6 0

<span>The opportunity cost of holding money decreases when the interest rate decreases, so people desire to hold more of it. Opportunity cost is what you are giving up to gain something else. The opportunity to do something, which takes an opportunity to do something else away. When the interest decreases, there is less things you are giving up to hold onto that money. </span>

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A company's Inventory balance at the end of the year was $188,000 and $200,000 at the beginning of the year. Its Accounts Payabl

Aloiza [94]

Answer:

$704,000

Explanation:

As we know that

Costs of goods sold = Beginning inventory + purchase made - ending inventory

$720,000 = $200,000 + purchase made - $188,000

So, the purchase would be

= $708,000

Now the cash payment would be

= Beginning balance of accounts payable + purchase - ending balance of accounts payable

= $80,000 + $708,000 - $84,000

= $704,000

7 0

4 years ago

A major oil company is considering the optimal timing for the construction of new refineries. From past experience, each doublin

Doss [256]

Answer:

a, 22276.07

b. $32.9157 million

c.$29.9669million

Explanation:

Find the values of k and a assuming a relationship of the form Assume that f(y)=ky^a is in units of barrels per day.

$\frac{f(2y)}{f(y)} =1.75=\frac{k(2y)^a}{k(y)^a} =2^{a} =a=\frac{Ln(1.75)}{Ln(2)} =0.8073$

$f(y)=ky^a=k=\frac{f(y)}{y^a} =\frac{25}{6000^0.807} =22276.07$

b. Determine the optimal timing of plant additions and the optimal size and cost of each plant addition.a=0.8073, rx=0.41

optimal timing x=rx/r=2.05yrs

optimal size xD=2.05(1.5)

3.075million barrels/year

$f(y)=ky^a=0.0223(\frac{3.075*10^5}{365} )^0.8073=32.9157million\\$

$32.9157 million

c. Suppose that the largest single refinery that can be built with current technology is 7,500 barrels per day. Determine the optimal timing of plant additions and the optimal size and cost of each plant in this case

Optimal size xD=min $\frac{307500}{365} ,7500= 7500 barrls/day =2.735million barrels /year$

Optimal timing will be X^*=x*D/D=2.7375/1.5=1.825 year

optimal cost f(y)=ky^a=0.0223(7500)^0.8073=$29,9669 milion

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4 0

4 years ago

The underwriting syndicate of a bond offering is a group of investment banks, merchant banks, and the merchant banking arms of c

lesya [120]

Answer:

The answer is A.

Explanation:

A syndicate is usually not one but a group. An underwriter syndicate is a group of investment banks(can also be commercial banks for the purpose of loan) and broker-dealers agree to sell new offerings of equity or debt securities to investors. There is usually a particular bank that leads and it is called the lead underwriter.

The correct option is A.

8 0

3 years ago

which categoryh of inventory holding costs would be much higher than average for rapidly chaning industries

Alex787 [66]

The correct option is (c) i.e, The pilferage, scrap, and obsolescence category of inventory holding costs are much higher than average for rapid-change industries such as PCs and cell phones.

<h3>What does Inventory Holding Cost mean?</h3>

Expenses associated with keeping inventory at a warehouse are known as inventory holding costs. Inventory that is kept on hand is a liability that reduces profit margins and raises operating costs for firms.

Inventory holding expenses include rent for the facility, security fees, depreciation costs, and insurance.

Businesses must take demand planning and demand sensing into account when these prices rise. These technologies can help businesses keep the right amount of stock on hand.

Therefore, The category of inventory holding costs that are depicted, based on the information provided comprises pilferage, scrap, and obsolescence.

The complete question is:

Which category of inventory holding costs has a much higher percentage than average for rapid-change industries such as PCs and cell phones?

A) housing costs

B) material handling costs

C) pilferage, scrap, and obsolescence

D) investment costs

To know more about inventory holding costs refer to: brainly.com/question/15298484

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6 0

2 years ago

Two stores - Lazy Guys and Ralph's Recliners - are located in the same city. Both stores buy recliner chairs from the same manuf

Leokris [45]

Answer:

Explanation:

Because Ralph´s Recliners assigns the fixed costs to more quantity of recliners. Each one of the products charges less part of the fixed cost, compared with each one made by Lazy Guys. Then, the average total cost is lower.

7 0

3 years ago