Question
Ford Company's cost of capital is 13%. It has invested x (million dollars) in current assets. The following function represents the shortage cost of its
Ford Company's cost of capital is 13%. It has invested x (million dollars) in current assets. The following function represents the shortage cost of its current assets:
S = 9 e-x/3
Find the following: (a) The optimal level of current assets. (b) Total annual cost of these assets at the optimal level.
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Entrepreneurial Finance
Authors: Philip J. Adelman, Alan M. Marks
4th Edition
0132434792, 9780132434799
