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Get college assignment help at uniessay writers Question 2 (15%) A firm buys days. What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year? on terms of 3/15, net 45. It does not take the discount, and it generally pays after 60
School uestion 2 (15%) A firm buys on terms of 3/15, net 45, It does not take the discount, and it generally pays after 60 days. What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year? SOLUTION: Question 3 (15%) A firm buys on terms of 2/8, net 45 days, it does not take discounts, and it actually pays after 58 days. What is the effective annual percentage cost of its non-free trade credit? (Use a 365-day year.) SOLUTION:
uestion 4 (30% ) Consider the following situations: (a) On average, a company receives 138 payments each day with an average value of 42 each These payments clear the bank in an average of 1.3 days. In addition, t disburses 2.2 checks a day with an average amount of 2,250. These checks clear the bank in two days. Calculate the company’s disbursement float, collection float, and net float. (10% ) (b) A company spends 98,000 a week to pay bills and maintains a lower cash balance limit of €75,000. The standard deviation of the disbursements is 12.200, The applicable interest rate is 4.36 percent and the fixed cost of transferring funds is 38, What is the optimal initial cash balance based on the BAT model? (10 % ) (c) A company begins each week with 60 gadgets in stock. This stock is depleted and reordered weekly. The carrying cost per gadget is 21 per year and the fxed order cost is 45. What is the economic order quantity? (10 % ) SOLUTION: www.euruni.edu
Dew Corporation has the following data, in thousands. Assuming a 365-day year, what is the fim’s cash cycle? How does it compare to its competitors? E45,000 €31,500 €4,000 €2,000 €2,400 Annual sales Annual cost of goods sold = Average Inventory Average Accounts receivable Average Accounts payable Benchmark Cash Cycle (industry average) 52.00
Question4 (30% ) Consider the following situations: (a) On average, a company receives 138 payments each day with an average value of 42 each These payments clear the bank in an average of 1.3 days. In addition, it disburses 2.2 checks a day with an average amount of 2,250. These checks clear the bank in two days Calculate the company’s disbursement float, collection foat, and net float. (10% ) (b) A company spends 98,000 a week to pay bills and maintains a lower cash balance limit of €75,000. The standard deviation of the disbursements is 12.200. The applicable interest rate is 4.36 percent and the ixed cost of transferring funds is 38, What is the optimal initial cash balance based on the BAT model? (10 % ) (c) A company begins each week with 60 gadgets in stock. This stock is depleted and reordered weekly. The carrying cost per gadget is 21 per year and the fxed order cost is 45. What is the economic order quantity? (10 % ) SOLUTION: www.euruni.edu
School Question 5 (10%) Describe the methods of cash colection ANSWER Question 6 (10% ) Explain the key issues in inventory management ANSWER: 5 www.euruni.edu
emestion4 (30%) Consider the following situations: (a) On average, a company receives 138 payments each day with an average value of €42 each. These payments clear the bank in an average of 1.3 days. In addition, it disburses 2.2 checks a day with an average amount of 2,250. These checks clear the bank in two days. Calculate the company’s disbursement float, collection float, and net float. (10% )
Question 2 (15%) A firm buys days. What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year? on terms of 3/15, net 45. It does not take the discount, and it generally pays after 60
or eZ,250. These checks clear the bank in two days. Calculate the company’s disbursement float, collection float, and net float. (10% ) (b) A company spends 98,000 a week to pay bills and maintains a lower cash balance limit of €75,000. The standard deviation of the disbursements is 12.200. The applicable interest rate is 4.36 percent and the fixed cost of transferring funds is 38. What is the optimal initial cash balance based on the BAT model? (10 % ) (c) A company begins each week with 60 gadgets in stock. This stock is depleted and reordered weekly. The carnina coet
e7TO70) (c) A company begins each week with 60 gadaets in stock. This stock is depleted and reordered weekly. The carrying cost per gadget is 21 per year and the fixed order cost is E45. What is the economic order quantity? (10% ) SOLUTION:
Get college assignment help at uniessay writers uOnsan Consider the following situations: (a) On average, a company receives 138 payments each day with an average value of €42 each. These payments clear the bank in an average of 1.3 days. In addition, it disburses 2.2 checks a day with an average amount of 2, 250. These checks clear the bank in two days. Calculate the company’s disbursement float, collection float, and net float. (10%) illa ond maintains a lower cash balance limit of
uOnsan Consider the following situations: (a) On average, a company receives 138 payments each day with an average value of €42 each. These payments clear the bank in an average of 1.3 days. In addition, it disburses 2.2 checks a day with an average amount of 2, 250. These checks clear the bank in two days. Calculate the company’s disbursement float, collection float, and net float. (10%) illa ond maintains a lower cash balance limit of
uOnsan Consider the following situations: (a) On average, a company receives 138 payments each day with an average value of €42 each. These payments clear the bank in an average of 1.3 days. In addition, it disburses 2.2 checks a day with an average amount of 2, 250. These checks clear the bank in two days. Calculate the company’s disbursement float, collection float, and net float. (10%) illa ond maintains a lower cash balance limit of
2.JPH Corporation has just signed a large deal with one of its customers. Dividends are expected to grow at rates of 10%, 15 % and 20% over the next three years. The fourth year and alollowing years, growth is expected to be 10%. If Pat is interested in purchasing 20 shares of JPH, how much would he be willing to pay if the market rate of interest is 12% and JPH has just paid dividends of $2.00 per share?
1. A company pays a current dividend of $1.20 per share on its common stock. The annual dividend will increase by 3%, 4% and 5% , respectively, over the next three years, and then by 6% per year thereafter. The appropriate discount rate is 12% . What is the current price of the stock? What is the capital gain or loss on the stock over the past year?
14. [6 marks] You are trying to decide between manufacturing a part using a standard milling machine or a CNC machine. The Standard Mill option will cost $5,000 in capital, have an annual operating cost of $2,000, and annual benefits of $4,000. The CNC Mill will cost $16,000 in capital, but have an annual operating cost of only $750 and an annual benefit of $4,000. Your interest rate is 12% per year. The Standard Mill has a useful life of 5 years, the CNC Mill has a useful life of 10 years. The standard mill will have a salvage value of $2000 at the end of its life. a] Which alternative should you select based on a Present Value analysis? [6 marks]
13. [5 marks] You work at an ultra-hipster micro-brewery, and are planning production for your new creation, a Stout IPA style Pilsner, “Metal Tortoise.” You use municipal water as your feedstock, treating it by filtration, dechlorinating, and giving it warm hugs at night Under the agreement with the city, your water is metered, and you pay a flat fee of $800 per month for up to 5,000 liters of water, and $0.08 per liter for any water over the 5,000-liter limit. Production of the existing products uses 4,000 liters per month. Assume that production remains constant. al You expect to sell 800 liters per month of Metal Tortoise. Regarding water only, what is the marginal cost of the additional water you need to add this product? [1 mark] [b] What is the average cost per liter of water for just the old, pre-Metal Tortoise product lines? What is the average cost per litre of water when you also sell 800 litres per month of Metal Tortoise? What is the average cost per litre of water if you instead produce 1,200 liters per month of Metal Tortoise? [2 marks] c] What is the total cost for water for just the old, pre-existing products? What is the total monthly cost for water with Metal Tortoise, if you’re selling 1200 litres of it per month? [1 mark] [d] Is water at your facility a fixed or variable cost? Explain. [1 mark]
12. [5 marks] Prior to the launch of Uber, taxi licenses in Metro Vancouver could sell for upwards of $200,000 License owners would often not drive the cars themselves, but lease the license to other drivers. a] If you purchased a license for $200,000, and leased it for $5000 per month, what is your payback period? [1 mark] [b] Assume you purchased it prior to Uber for $200,000 and leased it for $5000 per month. After two years, Uber launched and your lease fees dropped to only $2000 per month. You decide this is no longer worthwhile, and at the end of five years (from when you first purchased the license), you sell it for $30,000. Assuming your discount rate was 15%, what was the NPV of your taxi license adventure? [4 marks]
11. [5 marks] For the cashflow diagram below: Cashflow $400,000 $330,000 $280,000 $300,000 $230,000 $180,000 $200,000 TIl $130,000 $80,000 $100,000 $- S 5 6 7 8 9 1 2 3 4 $(100,000) $(200,000) $(220,000) $(300,000) [a] Calculate the Net Present Value of the cashflows given, using a discount rate of 25% [3 marks] b] Write an equation to calculate the Net Present Value of the cashflows using Functional Notation (e.g: NPV = F*(P/F, i, n)) [2 marks]
10. [6 marks] For the following Profit and Loss chart: Profit and Loss Chart for MECH 431 Manufacturing, Inc $35,000 $30,000 $30,000 $24,250 $25,000 $18,000 $24,875 $20,000 $15,000 $10,000 $5,000 $0 0 25 50 75 100 125 150 175 200 225 250 Units Produced Total Cost Total Revenue What is the breakeven point in terms of units produced? What is the breakeven point in terms of revenue? [1 mark] What are the fixed costs for the facility? [1 mark] What are the variable costs for producing the product? [2 marks] What is the marginal revenue for this product? [1 mark] What is the average cost of production for the full 250 units? What is the average cost of production at 50 units? [1 marks]
Dew Corporation has the following data, in thousands. Assuming a 365-day year, what is the fim’s cash cycle? How does it compare to its competitors? E45,000 €31,500 €4,000 €2,000 €2,400 Annual sales Annual cost of goods sold = Average Inventory Average Accounts receivable Average Accounts payable Benchmark Cash Cycle (industry average) 52.00
The post Question: Question 2 (15%) A Firm Buys Days. What Is The Nominal Annual Percentage Cost Of Its Non-free Trade Credit, Based On A 365-day Year? On Terms Of 3/15, Net 45. It Does Not Take The Discount, And It Generally Pays After 60 appeared first on uniessay writers.
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