Calculate the economic order quantity

Assignment Help Financial Management
Reference no: EM131912496

Two Seprate Budgeting/Finacne Questions: (Show Excel work Please)

1--Calculate the economic order quantity (EOQ) and ordering frequency (OF) for the water filters ($12.79 each), if the cost of placing an order is $5 and carrying costs are 10%. Annual usage is estimated at 1500 units.

2-- Dr. Rubin plans to invest $10,000 annually for three years. Two banks offer a 3 percent interest rate, but Bank A compounds quarterly and Bank B compounds semiannually. To what value would his money grow in each of the two banks? Which bank would you recommend?

Reference no: EM131912496

Questions Cloud

Calculate the net income of the two systems : Calculate the net income of the two systems if sales and production are expected to average 45,000 units per year
Strategy for ending an intimate relationship : Under what circumstances is it okay for someone to use sudden death withdrawal as a strategy for ending an intimate relationship?
Conduct an environmental scan for company : Conduct an environmental scan for your company focusing on which of the five external forces the company is likely to be impacted by and what actions.
Author perception of death and the treatment : Research Paper help needed on research paper for Death in Everyman. Discuss the author's perception of death and the treatment of death in Everyman.
Calculate the economic order quantity : Calculate the economic order quantity (EOQ) and ordering frequency (OF) for the water filters ($12.79 each),
Prepare a multiple-step income statement : On September 15, Dickinson sold the wholesale operations to Rogers Company. Prepare a multiple-step income statement
Bike sharing programs make city travel easy : Adam Sledd and his wife, KC, never dreamed of riding bikes through the busy streets of Washington, D.C.,
Estimate of the company cost of equity capital : What is your best estimate of the company’s cost of equity capital using arithmetic and geometric growth rates?
Identify types of information collected in telemedicine : Identify the types of data and information collected in Telemedicine. Select two of the types of data and explain how each is transmitted.

Reviews

Write a Review

Financial Management Questions & Answers

  How vertical analysis is use in financial policy formulation

Examine following in terms of how they are used in financial policy formulation and business strategy: Horizontal analysis, Vertical analysis and Raito analysis

  What is the after-tax cost of debt capital

A corporate bond has a face value of $1,000 and a coupon rate of 5%. The bond matures in 15 years and has a current market price of $950. If the corporation sells more bonds it will incur flotation costs of $25 per bond. If the corporate tax rate is ..

  Valuation of companys securities and risk assessment

Bonds: Consider the longest-maturity bond of the company. Assuming a current discount rate of 6%, what is the value of this bond? Common Stock: Consider the common stock of the company. Using the growth rate implied by the dividends paid five years a..

  What is the maximum amount you will pay for the new process

A manufacturer makes 7,900,000 bottles of supplements per year. Each bottle takes 0.4 minutes of direct labor at the rate of $8 per hour. The overhead costs are estimated at $11 per direct labor hour. The new process will reduce the unit production t..

  What is the market price of this bond

Wine and Roses, Inc. offers a 7% coupon bond with semiannual payments and a yield to maturity of 7.77%. What is the market price of this bond?

  What are dividends per share

That Wich Corp. had additions to retained earnings for the year just ended of $397373. The firm paid out $191215 in cash dividends, and it has ending total equity of $4772974. The company currently has 150,000 shares of common stock outstanding. What..

  Axis of the figure and intercept for market security line

The risk-free interest rate 2% and the mean return on the market portfolio of risky assets is 8%. You are analyzing three individual stocks. The first has a mean return of 5.5% and a beta of 0.5. The second has a mean return of 6.5% and a beta of 0.7..

  Prepare financial forecast for the coming year

You have been asked by the CFO to prepare a financial forecast for the coming year, using an Excel model, and then to present your forecast to the executive officers. Would you want to set up the model with a number of scenarios? Explain why.

  The various defenses to or modifications of liability

Betsy Boomer does not own a car and she must rely on friends for transportation. Last month, Betsy asked Freda Farnsworth to drive her to the store. Freda is known to be a reckless driver, but Betsy is not in a position to be choosy. Describe Freda’s..

  Markets required yield to maturity on comparable-risk bond

A bond that matures in 17 years has a $1,000 par value. The annual coupon interest rate is 9 percent and the market's required yield to maturity on a comparable-risk bond is 12 percent. What would be the value of this bond if it paid interest annuall..

  Balloon payment that is due when the loan matures

what is the monthly payment, and the balloon payment that is due when the loan matures?

  What is the amount of annual costs used in calculation

If the initial cost is $1.3 million and the annual benefits are $105,000, what is the amount of the annual M&O costs used in the calculation?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd