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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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