Can I get help with the following questions in excel ASAP? Thanks

15-1

(Estimating the cost of bank credit) Paymaster Enterprises has arranged to finance its seasonal working-capital needs with short a term bank loan. The loan will carry a rate of 12% per annum with interest paid in advance (discounted). In addition, Paymaster must maintain a minimum demand deposit with the bank of 10% of the loan balance throughout the term of the loan. If paymaster plans to borrow $100,000 for a period of 3 months, what is the cost of the bank loan?

16-15

(Comprehensive EOQ calculations) Knutson Products Inc. is involved in the production of airplane parts and has the following inventory, carrying and storage costs:

1. Orders must be placed in round lots of 100

2. Annual unit usage is 250,000. (Assume a 50 week year in your calculations)

3. The carrying cost is 10% of the purchase price

4. The purchase price is $10 per unit

5. The ordering cost is $100 per order

6. The desired safety stock is 5,000 units (This does not include delivery-time stock)

7. The delivery time is 1 week

Given the foregoing info.

A. Determine the optimal EOQ level

B. How many orders will be placed annually?

C. What is the inventory order point? (That is, what levelof inventory should a ne order be placed?)

D. What is the average inventory level?

E. What wouold happen to the EOQ if annual unit sales doubled(all other unit costs and safety stocks remaining constant)? Ehat is the elasticity of the EOQ with respect to sales? (That is, what is the percentage change in EOQ divided by the percentage change in sales)?

F. If carrying costs double, what will happen to the EOQ level? (assume the original sales lvel of $250,00) What is the elasticity of EOQ with respect to carrying costs?

G. If the ordering costs double, what will happen to the level of EOQ? (again assume original levels of sales and carrying costs) What is the elasticity of EOQ with respect to ordering costs?

H. If the selling price doubles, what will happen to EOQ? What is the elasticity of EOQ with respect to selling price?