What level of inventory should the company place an order

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Question 1.) A company sells 35 PS4 each day. It takes 5 days to receive a shipment of PS4 after an order is placed. The company maintains a safety stock of 3 days in inventory. At what level of inventory should the company place an order for PS4?

Question 2.) On January 1, Year 1, a 6,000,000 10% bond is issued to be repaid with equal annual payment of 2,000,000 each year for 3 years. Interest is also paid at the end of each year. What is the issue price of the bond assuming the nominal rate of interest is also the yield rate of the bond? (Use 4 decimal points for the Time value Factor)

Reference no: EM132583797

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