Question 2 (5 points) A firm requires 150,000 units (D) over a 150-day production period and is placing 2-orders of equal quantity (Q). Inventory is used at a constant daily rate. Ordering and Holding Costs are accounted for at end of the production period. Ordering Costs (OC) are $2,400/order and Holding Costs (HC) are $1.20/unit based on average inventory. The price per unit of inventory is $23 (C"). The firm pays for the inventory 60-days after delivery. The firm's cost of capital is 10% (1). For the inventory system, the COST of the second order is: Total Cost = Ordering Costs + Holding Costs + Item Cost Total Cost = OCX (D/O)] + [HCX (Q/2)] + (C" x D) Order Delivered At Order Cost Payment Due PVF Number Quantity PV Atta 60 0.983827 1 0 75,000 2 0.960526 $4,611 $4,800 150 ORDERING COSTS HOLDING COSTS $1,663,474 $3,450,000 O$1,697,102 $1,725,000