What are the estimated annual inventory holding

Assignment Help Financial Management
Reference no: EM131517143

HH Gregg is a new specialty store that sells home appliances and consumer electrics. A new 3D HD television, manufactured by Samsung, costs HH Gregg $600 per unit. HH Gregg’s annual holding cost rate is 22%. Ordering costs are estimated to be $70 per order.

a. If demand for the 3D HD television is expected to be constant with a rate of 20 units per month, what is the recommended order quantity for the 3D HD television?

b. What are the estimated annual inventory holding and ordering costs associated with this product?

c. How many orders will be placed per year?

d. With 250 working days per year, what is the cycle time for this product?

Reference no: EM131517143

Questions Cloud

Benefit decision on value potential insights applicable : Is there a Cost vs. Benefit decision on the value potential insights applicable?
Calculate the operating cash flow for a firm : Calculate the Operating Cash Flow for a firm with $4 million total revenues, $3.5 million cost of goods sold, $500,000 depreciation expense, and $120,000 intere
What are the sharpe and treynor ratios for the fund : Consider the following information for a mutual fund, the market index, What are the Sharpe and Treynor ratios for the fund?
Compound interest is a creator of wealth : Compound interest is a creator of wealth. A long-term outlook is required to make the most of the power of compounding.
What are the estimated annual inventory holding : What are the estimated annual inventory holding and ordering costs associated with this product?
Cost of debt using the approximation formula : Cost of debt using the approximation formula:
Compute the aftertax cost of preferred stock : Compute the aftertax cost of preferred stock. Compute the cost of retained earnings (Ke).
What is amtrak ordering cost-annual demand for new drivers : What is Amtrak’s annual demand for new drivers? What is Amtrak’s ordering cost?
What growth management problems : what growth management problems does R&E appear to face in this period?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the yield to call for this bond-current price

Fooling Company has a 11.2 percent callable bond outstanding on the market with 25 years to maturity, call protection for the next 10 years, and a call premium of $75. What is the yield to call (YTC) for this bond if the current price is 102 percent ..

  How much net income did the firm earn for the period

ABC Inc. has sales of $251,688, costs of $112,324, depreciation expense of $21,391, and interest paid of $49,571. The tax rate is 37 percent. How much net income did the firm earn for the period?

  Find the present value of this annuity if initial payment

Consider an annuity-immediate with monthly payments for twenty years. The payments are level in the course of each year, then increase by 2% for the next year. Find the present value of this annuity if the initial payment is $1,000 and i = 4%.

  Calculate the purchase price before yield

Calculate the Bond Equivalent Yield for a 180-day T-bill that is purchased at a 3% asked yield. The T-Bill has a face value of $10,000 (hint: you will need to calculate the purchase price before the yield, show work

  What will be its payback-IRR and NPV

The invanpah solar power plant cost $2.2 billion to build. it was expected to generate one million megawatt hours of electricity a year at a price of $0.12 per kilowatt hours. (a megawatt is 1000 kilowatts). it has only produced 40% of that over the ..

  Net income-total profit margin and cash flow

Brandywine Clinic, a not-for-profit business, had revenues of $12 million in 2012. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was $1.5 million. What were Brandywine's net income, total profit margin, and..

  The financial statements of a corporation and a partnership

Describe the effects damage estimates would have on the financial statements of a corporation and a partnership? How do disclosure requirements differ from a corporation to a partnership and what information is required? Are the shareholders at risk ..

  Estimate the expected return on the stock

Use the information below to estimate the expected return on the stock of Bieber Corporation. Please show work.

  Using the discounted payback criterion

Your task is to analyze two mutually exclusive projects: Using the payback criterion, which investment should you chose? Why? Using the discounted payback criterion, which investment should you chose? Why? Using the NPV criterion, which investment sh..

  Should the change to wire transfers be made

Pronet has an annual sale of $724 million from its 600 retail stores. Pronet can reduce its mail float by 2 days through the use of wire transfers. The annual cost of the wire transfers is expected to be $105,610. If Pronet's cost of short term funds..

  What is the terminal or horizon-value of operations

Kendra Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 for the next 2 years, respectively; after the second year, FCF is expected to grow at a constant rate of 8%. The company’s weighted average cost of c..

  What is the net present value of the project

Ford Motors expects a new hybrid-engine project to produce incremental cash flows of $100 million each year and expects these to grow at 4% each year. The upfront project costs are $900 million and Ford's weighted average cost of capital is 9%. If th..

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