Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem 1.

Part a) Assume the following facts about a firm:

Annual cost to maintain lock box $1,500
Cost to process each cheque $0.15
Average amount of each cheque received $1,500
Number of cheques received per year 4,000
Interest rate on borrowed funds 8.0%

How many days of float would a lock box system need to save to be justified?

Part b)

QWERTY Computer Manufacturing wants to price its new computer to earn a return of 60% on equity before interest and taxes. The computer has technological advantages that make management certain they can sell QWERTY's maximum production of 60,000 units per year at any reasonable price. The variable cost to build and sell a computer is $800, fixed costs are $5,500,000 per year, and the firm has $9,000,000 in its equity account. What is the minimum price QWERTY can sell the computer for and earn the return they want?

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M928634
  • Price:- $20

Guranteed 24 Hours Delivery, In Price:- $20

Have any Question? 


Related Questions in Basic Finance

Analyze the capital asset pricing model capmbull explain

Analyze the Capital Asset Pricing Model (CAPM). • Explain how the CAPM assists in measuring both risk and return. • Explain how the CAPM assists in calculating the weighted average costs of capital (WACC) and its compone ...

1 what are the stanton and peclet numbers and how are they

1. What are the Stanton and Peclet numbers and how are they related to other convective mass-transfer dimensionless numbers? 2. In applying dimensional analysis to explain mass-transfer coefficient, one must consider the ...

A neutron causes 83211bi to change according to the

A neutron causes 83 211 Bi to change according to the following reaction: 0 1 n + 83 211 Bi → Z A X + γ The Z A X nucleus subsequently undergoes β - decay, and its daughter does too. What is the atomic number of the fina ...

Pretty lady cosmetic product has an average production

Pretty Lady Cosmetic Product has an average production process time of forty days. Finished goods are kept on hand for an average of fifteen days before they are sold. Accounts receivable are outstanding an average of th ...

1 provide an illustration that highlights the differences

1. Provide an illustration that highlights the differences between consumer and industrial packaging. 2. What is the primary purpose of bar coding in packaging? 1s the role of bar coding different in materials handling? ...

Assume that european call and put options exist on a stock

Assume that European call and put options exist on a stock. That stock, however, is the target of a takeover in which an acquiring firm offers a fixed price for the stock. The takeover is almost certain to occur shortly ...

Go to wwwgpoaccessgoveop the web site for the economic

Go to www.gpoaccess.gov/eop/, the Web site for the Economic Report of the President. On the left of the screen, go to "Downloadable Reports/Tables" and in the "Statistical Tables" click on 2010. In the tables, use Table ...

1 what is the difference between global remuneration and

1. What is the difference between global remuneration and international assignment compensation? 2. What are the major issues related to the effectiveness of global remuneration plans? 3. How are equity compensation plan ...

An engineer at a pulp plant is considering the feasibility

An engineer at a pulp plant is considering the feasibility of sparging a waste gas stream containing a small concentration of chlorine gas into a chlorine-bleaching unit in order to augment the chlorine requirements for ...

Identify general-purpose statements and communication

Identify general-purpose statements and communication objectives for several situations. Read the following situations and write a general-purpose statement and a specific communication objective-the results you want-for ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen