a.If the variable cost per unit is $60, the current price is $140, and the...
90.2K
Verified Solution
Link Copied!
Question
Finance
a.If the variable cost per unit is $60, the current price is $140, and the monthly required return is 3.0%. What is the break-even Probability of Default for a company that is assessing granting credit for a new customer? Assume the customer is a repeat business.
b.A company is assessing granting credit to a new customer. The variable cost per unit is $90, the current price is $125, the probability of default is 34% and the monthly required return is 3.0%. Calculate the NPV if we are looking at repeat business.
c. A company with an inventory that has a $3.5 per unit carrying cost. The fixed order cost is $58 per order and the firm sells 100,000 units per year. How many orders should be placed based on EOQ
please explain thanks
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
