Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) XYZ Ltd. manufactures a product which has the monthly demand of 4,000 units. Product needs a component X which is purchased at $20. For every finished product one unit of component is required. Ordering cost is=$120 per order and the holding cost is 10% per annum.
You are needed to compute:

(a) Economic order quantity

(b) If minimum lot size to be supplied is 4, 000 units, determine the extra cost, the company has to acquire?

(c) What is the minimum carrying cost, company has to acquire?

2) Firm with the WACC of 10 percent is considering given mutually exclusive projects:

Year    0    1     2     3     4      5
  A   -400  55   55   55   225  225
  B   -600  300 300 50    50    49

Which project would you suggest via payback period rule if Maximum acceptable payback for it is= 4.7 years? NPV rule? Or via IRR rule? Describe which rule is best and describe why?

Requirements
Min Pages: 1

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914414

Have any Question? 


Related Questions in Basic Finance

Assume the followingerm 7rf 2expected risk premium on

Assume the following: E(rM) = 7% rF = 2% Expected risk premium on Boeing stock = 7% What is the expected return on Boeing stock? Show your work

Explain why interest rate swaps are more widely used than

Explain why interest rate swaps are more widely used than currency and equity swaps? Explain how swaps are similar to but different from forward contracts? Suppose that a party engages in a swap, but before the expiratio ...

1 behavioral measures frequently have the advantage of

1. Behavioral measures frequently have the advantage of reducing participant reactivity. Since they can capture the behavior of individuals more honestly, why are they so infrequently used in behavioral research? 2. Cons ...

1 what assumption about the future composite rate of

1. What assumption about the future composite rate of interest on an adjustable rate mortgage is made when determining the APR for federal truth-in-lending disclosures? 2. List the closing cost items which require RESPA ...

1 explain what a case study is discuss the limitations of

1. Explain what a case study is. Discuss the limitations of case studies for the study of human behavior. 2. What is systematic observation, and what techniques are used to make observations systematic? 3. What kinds of ...

1 how would a relatively high home inflation rate affect

1. How would a relatively high home inflation rate affect the home country's current account, other things being equal? 2. Is a negative current account harmful to a country? Discuss. 3. Explain why a stronger dollar cou ...

How does a conversion provision on a debt obligation

How does a conversion provision on a debt obligation provide an option to the investor? If the yield on a Treasury security is 3% and that of a similar-maturity municipal bond is 2.5%, what is the muni-Treasury yield rat ...

Company z just paid an annual dividend of 122 a share the

Company Z just paid an annual dividend of $1.22 a share. The stock has a market value of $34.60 and a dividend growth rate of 3.1 percent. What is the rate of return on this stock?

The us express reported that the color distribution for

The US Express reported that the color distribution for plain M&M's was: 40%brown, 20% yellow, 20% orange, 10% green, and 10% tan. Each piece of candy in a random sample of 100 plain M&M's was classified according to col ...

What is float what are its four basic components which of

What is float? What are its four basic components? Which of these components is the same from both a collection and a payment perspective? What is the difference between availability float and clearing float, and from wh ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

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