The interest rate is 240 what are the annual order costs


AIA Inc. is looking to manage its cash position using the EOQ model. The company is consuming cash at the rate of $6700 per day, and is open for business 365 days in the year. Each time the firm sells securities to obtain the cash, it costs them $240. The interest rate is 2.40%. What are the annual order costs associated with the EOQ?

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Financial Management: The interest rate is 240 what are the annual order costs
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