1) Given the following information about cash management of the Hong Company: Average cash payment is $148,000 per month. The company invests spare cash in Treasury Bills at an annual interest rate of 4.20%. The cost of each transaction of Treasury bills is $26. What is the average cash balance of the Hong Company? solve with formula

2) The annual sales of a car are $1 billion (i.e. $1,000,000,000). The sale price is $34,900 per car. The cost of placing an order is $1,420. The annual carrying cost per car is 3% of the sale price. What is the optimal order quantity? solve with formula

3) At CryptoBank, a $100,000 loan for one year has a quoted interest rate of 10.60% payable annually but with a compensating balance of 20%. At MoBank, a $100,000 discount loan has a quoted interest rate of 8.70% payable annually. The loan at MoBank is ______ per year cheaper than that at CryptoBank. solve with formula

4) Ignoring defaults, what is the approximate effective cost of factoring if receivables are sold at a 5.70% discount and the average collection period is 3 months ? solve with formula