Lead time for one of your fastest-moving products is 24 days. Demand during this period averages 110 units per day. a) What would be an appropriate reorder point? 2640 units (enter your response as a whole number). b) How does your answer change if demand during lead time doubles? units (enter your response as a whole number).
Q: Consider a project with an initial asset cost of $168,000 with depreciation of that asset set as…
A: Salvage value means the estimated residual worth of an asset at the end of its useful life. It…
Q: You have $3,000 on a credit card that charges a 20% interest rate. If you want to pay off the credit…
A: Compound = Monthly = 12Present Value of Payment = pv = $3000Interest Rate = r = 20 / 12 %Time = t =…
Q: A firm plans to issue 20 years bonds with a 7% annual coupon rate. The face value will be $1000 and…
A: The objective of the question is to calculate the Yield to Maturity (YTM) of the bonds issued by the…
Q: An investor believes that a particular stock's beta changes over time. To investigate the investor…
A: To predict the beta for the coming year using the regression equation provided (ẞt = 0.35 +…
Q: Given the following information: Price/Unit 225 VC/Unit 75 FC 500,000 Tax Rate 21% Rate…
A: Equivalent Annual Cost (EAC) = $1,000,000Financial Break-Even (FBE) = 3,333.33 unitsAnnual Operating…
Q: If the five-year present value annuity factor is 3.60478 and the four-year present value annuity…
A: The objective of the question is to find the present value of $1 received at the end of five years…
Q: What is your profit from exploiting the opportunity once (in $)?
A: Exchange rateBidAskValue of yen in U.S. dollars$0.008$0.0081Value of Canadian dollar in U.S.…
Q: Benjamin Graham, the father of value investing, once said, "In the short run, the market is a voting…
A: 1) option 1 is correct : A stock intrinsic value is based on true risk in the company 2) option 1 :…
Q: Raymond Mining Corporation has 9.4 million shares of common stock outstanding, 380,000 shares of 4%…
A: WACC refers to the average cost that the company bears on a periodic basis to employ the capital…
Q: Shatin Intl. has 10.4 million shares, an equity cost of capital of 13.3% and is expected to pay a…
A: As there are no taxes and no other imperfect market conditions, the dividend payment or repurchase,…
Q: Assume Evco, Inc. has a current stock price of $50.29 and will pay a $2.10 dividend in one year; its…
A: The constant growth model is a model for finding out the price of share on the basis of future…
Q: Splish Inc. is considering modernizing its production facility by investing in new equipment and…
A: A payback period is the amount of years needed to recoup the initial monetary outlay. That is, to…
Q: am. 114.
A: The objective of this question is to calculate the profitability index of a project. The…
Q: If the intrinsic value of a stock is below the current market price, over time we can expect buy…
A: In this question, we are required to determine the consequence of intrinsic value of a stock being…
Q: Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of…
A: Payback Period = is the period required to cover initial investment from the annual cash flowNPV is…
Q: You can afford monthly payments of $800. If current mortgage rates are 3.06% for a 15-year fixed…
A: A mortgage refers to a covered loan borrowed to purchase a property with the property itself acting…
Q: Barnyard Traders uses a combination of shares and debt in their capital structure. The details are…
A: A financial indicator called the Weighted Average Cost of Capital (WACC) is used to calculate the…
Q: a. R 4 A and B are two portfolios. A has a sample mean of success 12% and B 10 has a sample mean of…
A: The objective of the question is to calculate the Sharpe's index for Portfolio A, Portfolio B and…
Q: The Faulk Corp. has a 7 percent coupon bond outstanding. The Yoo Company has an 11 percent bond…
A: The price of the bond changes with the change in interest rate and change in the coupon rate. If the…
Q: Compute the necessary calculations and advise DD Traders Limited if it is worth investing in…
A: Given Data:DD Limited, South Africa, is considering two options for expanding its operations:1. Set…
Q: You work for an outdoor play structure manufacturing company and are trying to decide between the…
A: Internal rate of return refers to the return that is earned on the investment made by the investors…
Q: Alpha Ltd is contemplating an investment in a new piece of machinery. Based on the details given…
A: Net present value maybe defined as a method that calculates the present value of future in flows Or…
Q: The current price of a non - dividend paying stock is $617 and the annual standard deviation of the…
A: As per the Black sholes model ,
Q: You wish to evaluate a project req project earns $12,900 per year, wh The minimum annual cash inflow
A: Given: ParticularsAmountInitial investment (PV)$60,100Life (NPER)7Cost of capital (Rate)8.20%Amount…
Q: Present and future value tables of $1 at 3% are presented below: N FV S1 PV $1 FVA S1 PVA S1 FVAD S1…
A: Variables in the question:FV=$530000N=7 yearsRate=6% (compounded…
Q: The Ste. Marie Division of Pacific Media Corporation just started operations. It purchased…
A: Net Book Value -The term "net book value" (NBV) describes how an accountant records the assets or…
Q: Problem 11-27 (Algo) Marginal cost of capital [LO11-5] Delta Corporation has the following capital…
A: Capital structure means mix of borrowed funds and owner's funds that a company uses for it's…
Q: Monthly payments of $150 are paid into an annuity beginning on January 31, with a yearly interest…
A: An annuity is a financial product designed to provide a stream of periodic payments over a specified…
Q: If accounts receivable increase by R500, inventory increases by R200 and accounts payable increase…
A: Increase in accounts receivables = R500Increase in inventory = R200Increase in accounts payable =…
Q: Shatin Intl. has 9.7 million shares, an equity cost of capital of 13.3% and is expected to pay a…
A: Stock Price also known as Share price is the price at which an individual can buy a single share of…
Q: Suzan just finished a new movie script. Paramount offers to buy the script for (a) $1,100,000 or…
A: Solved and explained in detail belowExplanation: To calculate Suzan's payoff if she chooses Option B…
Q: Expected return Standard deviation
A: Given Data: Expected Return (S)17%Expected Return (B)13%Risk free rate8%Srandard…
Q: If accounts receivable increase by R500, inventory increases by R200 and accounts payable increase…
A: The objective of the question is to calculate the change in net working capital given the changes in…
Q: Rare Agri-Products Ltd. is considering a new project with a projected life of seven (7) years. The…
A: The objective of the question is to calculate the initial investment required for the new project by…
Q: How much will accumulate in three years by depositing $540 at the end of each of the next 12…
A: The future value can be compared by looking at how much money you will have in the future from the…
Q: Benjamin Manufacturing has a target debt-equity ratio of .45. Its WACC is 11.2%, and its cost of…
A: The cost of equity signifies the expected rate of return a company needs to deliver on its equity…
Q: Washington Mutual was a US Bank which went bankrupt at the end of 2008 due to a number of risk…
A: See the answer in the explanation field.Explanation:Answer information:Step 1:A. Credit Risk from…
Q: . A company seeks to maintain an internal growth rate of 13%, with a retention ratio (also called a…
A: The internal growth rate is the rate of growth in sales that does not require any external…
Q: Bank X and Bank Y are two of the top 5 banks operating in Zambia. As of 31 December 2023,Bank X held…
A: Part 1: Return on Assets (ROA)A. Calculation of ROA Ratios:\[ ROA = \frac{Net Income}{Average Total…
Q: On the Apple tab, the slope and beta are the same value.
A: In general, the claim that "the slope and beta are the same value on the Apple tab" is false.
Q: Sunstrand Incorporated has 190 million shares of common stock priced at $116, 13 million shares of…
A: The objective of the question is to calculate the weight of common stock in Sunstrand's capital…
Q: Suppose you have a stock market portfolio with a beta of .81 that is currently worth $580 million.…
A: Portfolio beta = 0.18Portfolio value = $580,000,000Delta = 0.30S&P index = 1,270
Q: Assume Coleco pays an annual dividend of $1.47 and has a share price of $37.88. It announces that…
A: The dividend yield refers to the measure of the attractiveness of a stock based on the performance…
Q: Create a budget for the Bright Lights Awards using the following information: We have been allocated…
A: The objective of the question is to create a budget for the Bright Lights Awards based on the given…
Q: Show that it is possible to replicate the stock payoff by borrowing and buying a call option.
A: The current stock price is $50 per share, that call options can be purchased at an exercise price of…
Q: Loan 1: $200,000 at 4.5% for 30 years, monthly payments, and no origination cost. APR = 4.80% Loan…
A: ABCD1Loan2,000,0002,000,0002,000,0002years3030303Months360=B2*12360=C2*12360=D2*124APR4.80%4.50%4.25…
Q: Blur Corp. has an expected net operating profit after taxes, EBIT(1-T), of $7,600 million in the…
A: Operating profit after tax (In million)$7,600Net capital expenditure (In million)$1,140Net working…
Q: You are a consultant to a large manufacturing corporation considering a project with the following…
A: The NPV of the project refers to the measure of the profitability of the project by discounting the…
Q: Rare Agri-Products Ltd. is considering a new project with a projected life of seven (7) years. The…
A: Weighted average cost of capital refers to an expense that is being charged on the funds that are…
Q: Cooperton Mining just announced it will cut its dividend from $3.88 to $2.68 per share and use the…
A: Common stock or shares of the company is the security that offers the ownership rights to the…
Step by step
Solved in 4 steps
- Lead time for one of your fastest-moving products is 24 days. Demand during this period averages 110 units per day. a) What would be an appropriate reorder point? units (enter your response as a whole number).If D = 8,400 per month, S = $43 per order, and H = $1.50 per unit per month, a) What is the economic order quantity? The EOQ is 694 units (round your response to the nearest whole number). b) How does your answer change if the holding cost doubles? The EOQ is whole number). units (round your response to the nearestIf D = 8,400 per month, S = $43 per order, and H = $1.50 per unit per month, a) What is the economic order quantity? The EOQ is units (round your response to the nearest whole number).
- Given the following information: Order quantity = 300; σdLT= 20 units; desired lead time service level = .86. Find the expected number of units short per cycle. Find the annual service level.In most cases, if a i rm increases its service capacity by 10 percent, it would expect waiting times to be reduced by what percentage? Assume customer arrivals and service times are random.Currently, a company can produce 60 units per hour of a particular product. During this hour, move time and queue time take 30 minutes, while actual processing time is 30 minutes. REQUIRED: 1.Calculate the current MCE. 2.Suppose that move time and queue time are reduced by 50 percent. Calculate the new MCE.
- 1. Compute the throughput time. (Round your answer to 1 decimal place.) 2. Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your perce 3. What percentage of the throughput time was spent in non-value-added activities? (R whole percent.) 4. Compute the delivery cycle time. (Round your intermediate calculations and final ar 5. If by using Lean Production all queue time during production is eliminated, what will b answer to 1 decimal place.)Build a spreadsheet model to calculate the profit/loss for a given demand. What profitcan be anticipated with a demand of 3500 copies?The annual demand for a particular chemical product is 1,200 units. Suppose that the annualholding cost is $24 per unit, and the ordering cost is $100.Part A: Find the optimal order quantity based on EOQ analysis, and calculate the combinedannual ordering and holding cost.Part B: Now suppose that the store manager finds out that the demand has been underestimated.Specifically, the correct annual demand is 1,500 units. On the other hand, due to operationalrestrictions she cannot change the order quantity and thus use the same order size from part A.How much this error cost the store? (This can also be considered as a penalty for parametermisestimation).
- Choose the correct letter of answer Assuming that the company’s monthly demand is 10,000 units of Product x and y, which mathematical model is appropriate to express such a constraint? a. x + y ≤ 10,000b. x + y ≥ 10,000c. x - y = 10,000 d. none of the aboveRicky Orange’s annual demand is 12,500 units. Ordering cost is $100 per order. Holding cost is estimated at 20% of product cost which is $50 per unit. What is the number of orders per year using EOQ to compute the best quantity to order? What is the annual holding cost? What is the reorder point? Assume four weeks/month, lead time L is one week and demand rate is 250 units per week.An inventory item has a demand of 10,000 units per month. The cost of each unit is $6, and the interest on tied-up money is 10%. The average ordering cost is $250 per order. a) What is the EOQ? units (round your response to the nearest integer). b) What is the optimal number of orders per year? to the nearest integer) c) What is the optimal number of days between any two orders? your response to the nearest integer) d) What is the annual holding cost? $ nearest integer) orders (round your response e) What is the total annual cost of the inventory system? $ to the nearest integer) days (round per year (round your response to the (round your response