1.$98,000 is spent on bills weekly and maintains lower cash balance limit $95,000. standard deviation of disburse is $14,600. applicable interest rate is 4.8% and fixed cost of transfer funds is $50. what is the firm’s total cost of holding cash on the BAT model?
2.accents sell at 345 units/monthly at $59/unit. if sales are increased by an add’tl 55 units and switched to net 30 credit policy monthly interest is 0.4% and variable cost per unit is $32. What is the net present value of proposed credit policy switch?
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