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Unformatted text preview: Total Gain (Loss) Cash at Start $300.00 Cumulative Desired -$400.00-$400.00 -$400.00 Excess Cash Loans A. $150.00 B. $ 60.00 C. $180.00 D. $ 90.00 E. $120.00 22. Assume that a company believes that it will need to order 250,000 units of inventory over the coming year. The current price of inventory is $4 per unit. Fixed ordering charges for inventory are $20.00 per order and carrying costs for inventory are equal to 10 percent of the average value (price, net of discount, if any) of the inventory carried. As you can calculate, the optimal order quantity is:...
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This note was uploaded on 07/13/2011 for the course FIN 4414 taught by Professor Staff during the Spring '08 term at University of Florida.
- Spring '08