What is the economic order quantity (EOQ), assuming that the annual demand for cash is $1 million,

Question:

What is the economic order quantity (EOQ), assuming that the annual demand for cash is $1 million, the cost of converting marketable securities to cash is $1,000 per transaction, and the market-bearing interest rate is 4.5 percent? What is the number of cash conversions per year?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Foundations Of Airline Finance

ISBN: 9780415743259

2nd Edition

Authors: Bijan Vasigh, Kenneth Fleming, And Barry Humphreys

Question Posted: