Minimize expected interest costs

Assignment Help Mechanical Engineering
Reference no: EM13888376

Condo Construction Company is going to First National Bank for a loan. At the present time, the bank is willing to lendCondo up to $1 million, with interest costs of 10%. Condo believes that the amount of borrowed funds needed during thecurrent year is normally distributed, with a mean of $700,000and a standard deviation of $300,000. If Condo needs to borrowmore money during the year, the company will have to go toLouie the Loan Shark. The cost per dollar borrowed from Louie is 25¢. To minimize expected interest costs for the year,how much money should Condo borrow from the bank?

Reference no: EM13888376

Questions Cloud

What duties to church might bagley have violated : What duties to Church might Bagley have violated in this situation?Lundberg v. Church Farm, Inc. - case to refer to
Define a work breakdown structure and describe : Define a work breakdown structure and describe the methodology behind constructing one
What is the difference between dss and knowledge management : What is the difference between DSS and knowledge management?
What is the principal remaining-nominal compounded monthly : What is the principal remaining after 15 monthly payments have been made on a $23,000 four-year loan? The annual interest rate is 12% nominal compounded monthly. Please show all steps.
Minimize expected interest costs : If Condo needs to borrowmore money during the year, the company will have to go toLouie the Loan Shark. The cost per dollar borrowed from Louie is 25¢. To minimize expected interest costs for the year,how much money should Condo borrow from the ba..
What is the value of software? give several examples : What is the value of software? Give several examples of software you use at school or home.
Impossible trinity of international macroeconomics : Economists sometimes refer to the attempt by countries to fix their exchange rates, control thier money supply, and operate with open capital accounts in their balance of payments (that is , to have no restrictions on capital movements) as the "impos..
What are the independent variables : What variables affect the damping of a spring executing simple harmonic motion?
What is the difference between e-commerce and mcommerce : What is the difference between e-commerce and mcommerce?

Reviews

Write a Review

Mechanical Engineering Questions & Answers

  The masses of the bar and the disk are 5 kg and 10 kg

the masses of the bar and the disk are 5 kg and 10 kg respectively. the coefficient of kinetic frictionnbspbetween the

  Fundamental entropy equation for ds

Starting with the differential form of the fundamental entropy equation for dS (see Eq1 below and the total differential for dU as a function of V and T. Assuming N is constant, derive an equation for dS dependent on only dV and dT. Provide Each s..

  Describe this structure as a lattice and a basis the cu3au

consider the cuau crystal structure. it can be described as a simple cubic lattice with a basis of cu 0 0 0 cu 1 2 1 2

  Perfect gas undergoes a reversible polytropic process

A perfect gas (methane) undergoes a reversible polytropic process in which the polytrotic exponent is 1.4. 1) Using the first law, arrive at an expression for heat transfer per unit mass solely as a function of the temperature difference (change in T..

  Determine the diameter of the largest voids

The atomic radius of iron is 0.129 nm and it has a bcc unit cell at room temperature and an fcc unit cell at high temperature. One of the largest void is located at (1/2,1/4,0) in the bcc unit cell, and at (0,1/2,0). Determine the diameter of the lar..

  Blended mass and starch-protein ratios

In a single screw extruder, rice starch, soy protein and water were mixed in the mass ratio of 60:35:5. The homogeneity of the mixture was assessed in terms of mixing index (MI). Ten random samples were drawn from the final blended mass, and starch-p..

  A distillation column as shown in the figure to the right

a distillation column as shown in the figure to the right is a device used to separate components with different

  What percentage of the bearings will last for 38000000

you have tested bearings for a particular machine. this resulted in a mean of 40570000 cycles with a standard deviation

  Determine using paulings rules the like coordination number

given the following oxides b2o3 mgo zro2 and tio2a. determine using paulings rules the like coordination number for

  Determine the temperature of propane at the end of process

A quantity of propane is contained in a piston-cylinder assembly. This working fluid undergoes a process starting from an initial state of 2.0 MPa and 60oC. At the end of the process the pressure of the propane is 1.0 MPa and the specific entropy is ..

  Calculate the work done and the final temperature

Calculate the work done and the final temperature for the following processes: Polytropic, n = 1.1, 4.0 lbm of Air, T1 = 1300 °F, v1=6.519 ft3/lbm. The pressure decreases to half the initial pressure during the process.

  Iron has a bcc crystal structure an atomic radius of 0124

a iron has a bcc crystal structure an atomic radius of 0.124 nm and an atomic weight of 55.85 gmol. compute and compare

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