Eoq model- very large increase in sales will result

Assignment Help Financial Management
Reference no: EM13876419

According to the EOQ model, a very large increase in sales will result in

A. a very large increase in inventory

B. a decrease in inventory

C. either a or b could be correct

D. a large decrease in inventory

E. little additional inventory

Reference no: EM13876419

Questions Cloud

The class date was designed and implemented : In Programming Exercise 2, the class Date was designed and implemented to keep track of a date, but it has very limited operations. Redefine the class date so that, it addition to the operations already defined, it can perform the following operation..
Compute the adequate positions in the hedging instruments : You currently hold a 7-year fixed rate bond 5% annually. You would like to hedge against changes in the level and the slope of the yield curve and you plan to use a 1-year zero coupon bond and a 7-year zero coupon bond. Use the following table to com..
Instantiate a circle by giving its radius and use : Write a class Circle.java from which we can instantiate a circle by giving its radius and use it as is shown in the following program. 1 import java.util.Scanner; 2 public class Circles {
Old manufacturing equipment with an annual depreciation : Refer to the data in Problem. Estimate the cash from operations expected in year 2.In Problem, Cameron Parts has the following data from year 1 operations, which are to be used for developing year 2 budget estimates:
Eoq model- very large increase in sales will result : According to the EOQ model, a very large increase in sales will result in
An n n matrix is called a positive markov matrix : An n n matrix is called a positive Markov matrix if each element is positive and the sum of the elements in each column is 1. Write a program MarkovMatrix.java that prompts the user to enter a 33 matrix of double values. Use a method with the followi..
Generates after-tax cash flows : An investment of $83 generates after-tax cash flows of $46.00 in Year 1, $70.00 in Year 2, and $131.00 in Year 3. The required rate of return is 20 percent. The net present value is
Going public establishes firms true intrinsic value : Going public" establishes a firm's true intrinsic value and ensures that a liquid
Capita consumption of bottled water : According to botttledwater.org, in 2012, the per capita consumption of bottled water in the USA was reported as 30.8 gallons. What is the probability that someone in the United States consumed more than 32 gallons of bottled water in 2012?

Reviews

Write a Review

Financial Management Questions & Answers

  How would you analyze and interpret the data?

How would you analyze and interpret the data?

  Consider a stock index currently standing

Consider a stock index currently standing at 2,100. The dividend yield on the index is 3% per annum and the risk-free rate is 1%. A 3-month European call option on the index with a strike price of 2,000 is trading at $105.91. What is the value of a 3..

  Determine the total interest cost under each plan

Biochemical Corp. requires $500,000 in financing over the next three years. The firm can borrow the funds for three years at 10.60 percent interest per year. The CEO decides to do a forecast and predicts that if she utilizes short-term financing inst..

  Contribution margin ratio-net operating income

Maack Corporation's contribution margin ratio is 19% and its fixed monthly expenses are $51,500. If the company's sales for a month are $314,000, what is the best estimate of the company's net operating income? Assume that the fixed monthly expenses ..

  This debt must be repaid in two equal instalments

Digital Organics (DO) has the opportunity to invest $0.98 million now (t = 0) and expects after-tax returns of $580,000 in t = 1 and $680,000 in t = 2. The project will last for two years only. The appropriate cost of capital is 14% with all-equity f..

  Project to improve its production efficiency

CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $495,000 is estimated to result in $194,000 in annual pretax cost savings. The press falls in the MACRS five-year class (MACRS Ta..

  Walgreen corporation is contemplating new investment

The Walgreen Corporation is contemplating a new investment that it plans to finance using one-third debt. The firm can sell new $1000 par value with a 15-year maturity at a price of $954 that carry a coupon interest rate of 12.2 percent that is paid ..

  Calculate the yield-to-maturity

Cellular International zero coupon bonds (par value $1,000) mature on April 21, 2020. Calculate the yield-to-maturity if an investor purchased one of these bonds on April 21, 2014, at a price of $650.

  Projections given for price-quantity-variable costs

You are evaluating a project that costs $840,000, has seven-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 90,000 units per year. Price per unit is $40, vari..

  What is the expected dollar return on the gamble

Suppose that a person won the Florida lottery and was offered a choice of two prizes: (1) $500,000 or (2) a coin-toss gamble in which he or she would get $1 million if a head were flipped and zero if a tail. What is the expected dollar return on the ..

  Identify specific fraud risk present

Identify specific fraud risk present during PwC's audits of the Lipper hedge funds. Explain how Pwc should have responded to the fraud risk factors that you identified.

  Diversified stock portfolio currently worth

Suppose you own a well diversified stock portfolio currently worth 10 million. The portfolio has a beta of 0.8. Assume the S&P 500 futures price is 1,200. Describe in detail the futures transaction you would undertake to hedge the value of your portf..

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