Question 4: a) Your company has been offered credit terms of 4/30, net 90 days. What will be the nominal annual percentage cost of its non-free trade credit if it pays 120 days after the purchase? (Assume a 365-day year.) b) ABC Ltd. is in a trading business where they buy finished product of ceiling fans and sell it as a wholesaler and retailer. As per their experience, they sell 40000 units per year on a continuous basis. There is a Rs.2000 fixed cost of an order regardless the size of the order and the carrying cost is Rs.50 per unit per year. It takes two days to receive a shipment after an order is placed, and the firm wishes to hold in inventory 10 days' usage as a safety stock. a. Calculate the EOQ. b. Determine the average level of inventory. c. Determine the reorder point