1. A manufacturing firm has the following estimates for its inventory:
   • 100,000 oz. of silver (D) is required for production each month
   • Ordering Costs are $50.00/order (OC)
   • Holding Costs are $1/oz. (HC)

1. Calculate the EQQ based on the information;
2. Whats the total cost at this EQQ units

2. What are some major considerations in extending trade credit?

Whats the five Cs of credit approval?

3. A firm has made a credit sales with the following credit terms:

• $2,000,000 order, 30-day credit terms
• VCR (0.30) = Variable cost ratio/$ of sales
• EXP (0.05/CP) = Expenses for credit administration and collection/$ of sales
• i (0.10/365) = Daily interest rate
• CP (45 days) = Collection period for sale

1. Calculate the variable cost of this sales
2. Calculate the present value of this sales
3. Calculate the NPV of this sales