Paul currently has an investment portfolio that contains 2 stocks that have a total value equal to 1000000, what is the portfoli
1 answer:
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Answer:
Net present value
Explanation:
<u>Missing Information </u>
Weighted average cost of capital: 8% and Solve for net present value:
investment: project outlay 20,500,000 + increase in working capital 450,000
F10 salvage value: 300,000 + 450,000 liberate working capital
cahsflow per year income 1,111,000
C 1,111,000.00
time 10
rate 0.08
PV $7,454,900.4342
Maturity $750,000.00
time 10.00
rate 0.08000
PV 347,395.1161
Net present value
7,454,900 + 347,395 - 20,500,000 - 450,000 = -13.147.705
Answer:
Given,
Annual demand, D = 12500,
Setting up cost, S = $ 49,
Production rate per year, P = production facility × capability of production = 300 × 105 = 31500,
Holding cost per year, H = $ 0.15,
Hence,
(i) Optimal size of the production run,
(ii) Average holding cost per year,
(iii) Average setup cost per year,
(iv) Total cost per year = average setup cost per year + average holding cost per year + cost to purchase 12500 lights
= 166.44 + 166.48 + 12500(0.95)
= $ 12207.92