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4 years ago

Based on the constant demand assumption in the economic order quantity (EOQ) model, the average cycle inventory is:____________

Business

1 answer:

leva [86]4 years ago

3 0

Answer:

C) half of the order quantity

Explanation:

The constant demand assumption in the economic order quantity (EOQ) model permits that there should be a minimum number of goods any company should purchase in order to help minimize different types of costs accrued through this system.

Based on the constant demand assumption in the economic order quantity (EOQ) model, the average cycle inventory is half of the order quantity.

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On January 2, 2017, Jones Company purchases a call option for $300 on Merchant common stock. The call option gives Jones the opt

Vikentia [17]

Answer and Explanation:

The journal entries and the impact on the net income is as follows:

1 Call option $300

To Cash $300

(To record the purchase of the call option

2 Unrealized gain or loss -income $100 ($300 - $100)

To Call option $100

Call option $3000 ( ($53 - $50) × 1000) $3,000

To Unrealized gain or loss- income $3000

(Being the change in fair value is recorded)

3. The impact would be

Unrealized holding gain is

= $3,000 - $100

=$2,900

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3 years ago

A borrower has secured a 30-year, $150,000 loan at 7% with monthly payments. Fifteen years later, the borrower has the opportuni

aliina [53]

Answer:

Return on investment ≈ 29%

Explanation:

using excel function

Determine :

Rate = 7% / 12 = 0.0058

Nper value = 30 years * 12 = 360

PV = -$150,000

∴ PMT value = $997.95

next : calculate the outstanding balance 15 years later

= ( 997.95 / 0.00583 ) * ( 1 - ( 1 / ( 1 + 0.00583 )^15*12 ))

= 171174.96 * 0.6489

= $ 111,075.43

Considering the opportunity to refinance

Rate = 6% /12 = 0.005

Nper = 15 * 12 = 180

Pv = - $111,075.43

∴ PMT = 937.32

the monthly saved up payment = PMT 1 - PMT 2

= 997.95 - 937.32 = $60.63

Finally

Rate of return on investment

= 2500 = 60.63 * $( \frac{1 - (\frac{1+r}{12})^{-15*12} }{r} )$

hence Rate of return ≈ 29 %

attached below is a screenshot of the excel function used for question 2 and it can be used for question 1 as well just change the values

6 0

3 years ago

When are you required to operate a motorboat or pwc at 30 miles per hour or less?

saw5 [17]

When are you required to operate a motorboat or PWC at 30 miles per hour or less the operator should operate between one-half hour after sunset and one hour before sunrise. It is illegal to operate a motorboat or PWC in excess of 30 miles per hour without any permission at any time from a half hour after sunset until one hour before sunrise when on waters on the state and therefore be accused by exceeding night speed limit. In addition, when the operator sees buoys or sign, they specify a boating restricted area established to protect the safety of the public and property. In these areas, a vessel may not progress at a speed greater than essential to preserve steering.

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3 years ago

Claude had an unpleasant experience during his last visit to dallas, texas. he was approached by two men with strong texas accen

aev [14]

Classical conditioning. When Claude came into contact with a particular scenario (Texas accent) he experienced a negative outcome (being robbed) so now he associates the negative outcome with the scenario where he encountered it.

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3 years ago

Renfro Corporation’s bonds will mature in 10 years. The bonds have a face value of $1,000 and an 8% coupon rate, paid semiannual

sergiy2304 [10]

Answer:

Renfro Corporation

The bond's yield to maturity is:

= 0.067

The bond's current yield is:

= 0.073

The bond's capital gains yield is:

= -0.006

Explanation:

a) Data and Calculations:

Maturity period of bonds = 10 years

Face value of the bonds = $1,000

Coupon rate = 8% paid semiannually

Price of the bonds = $1,100

Yield to maturity (YTM) = (C + {(FV - PV)/t})/{(FV + PV)/2}

where C = Coupon interest = $80 ($1,000 * 8%)

FV = Face value of the bonds

PV = Present value or price of the bonds

t = number of years

YTM = ($80 + {($1,000 - $1,100)/10})/{($1,000 + $1,100)/2}

= ($80 + {(-$100)/10})/{($2,100)/2}

= ($80 + $-10/$1,050

= $70/$1,050 = 0.06667

= 0.067

Current Yield = Annual interest/Price

= $80/$1,100

= 0.073

Capital gains yield = YTM - Current Yield

= 0.067 - 0.073

= -0.006

8 0

3 years ago