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(a) Western Union has granted Aqua Ltd., a line of credit that allows it to borrow up to $82 million at any time. T
(a) Western Union has granted Aqua Ltd., a line of credit that allows it to borrow up to $82 million at any time. T interest rate is 0.37% per month. But Aqua Ltd. is required to have 9% of the borrowed amount deposited in a non-interest-bearing account. Assume the bank uses compound interest on its line of credit loans, what is the effective annual interest rate on this lending arrangement? (4 points) (b) Explain the 5 C's of Credit. (5 points) (c) Aqua Ltd. uses 2,780 machine parts per week and then reorders another 2,780. If the relevant carrying cost p machine part is $16.25, and the fixed order cost is $2,110, what is the EOQ for Aqua Ltd.? Explain your answer ( points)
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