Answer:
(Q, R) = (1555, 1400)
shortage imputed = $0.388
Explanation:
Lot size-reorder point system is one of the multi period models. This system is denoted by decision variables (Q, R). This multi period model is implemented when there is uncertain demand in inventory control.
nevertheless, in the simple EOQ model, demand is known and fixed. But when the demand is random, these lot size-reorder point (Q, R) systems allow random demand.
There are two decision variables in a (Q, R) system:
Order quantity, Q and
Reorder point, R
Additional steps are attached as files
Answer:
The maximum possible change in real GDP is $25 million
Explanation:
Data provided in the question:
Increase in investment = $5 million
Marginal propensity to consume = 0.8
Now,
Spending multiplier, m = 1 ÷ [ 1 - Marginal propensity ]
or
m = 1 ÷ [ 1 - 0.8 ]
or
m = 5
Therefore,
Increase in GDP = m × Increase in investment
or
Increase in GDP = 5 × $5 million
or
Increase in GDP = $25 million
Hence,
The maximum possible change in real GDP is $25 million
Answer:
"Net Present Value" is the right approach.
Explanation:
A method used to determining or calculating the gaps between the current valuation of initial investment as well as the outputs of something like development or possible expenditure is termed as net present value.
The formula which is used to find the NPV is given below:
⇒
here,
- i = Return required
- t = No. of periods
Answer:
$213451.2
Explanation:
9.8% of the savings monthly
9.8/100 X 360
35.28
total monthly savings = 360 + 35.28
= 395.28
So, for the next 45 years, total amount in account
= 45 X 12
= 540 months
Total account for 45 years
= 540 X 395.28
= $213451.2