What are the annual order costs associated with the EOQ

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Reference no: EM131920344

AIA Inc. is looking to manage its cash position using the EOQ model. The company is consuming cash at the rate of $6700 per day, and is open for business 365 days in the year. Each time the firm sells securities to obtain the cash, it costs them $240. The interest rate is 2.40%. What are the annual order costs associated with the EOQ?

Reference no: EM131920344

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