Calculate the economic order quantity

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Reference no: EM131912496

Two Seprate Budgeting/Finacne Questions: (Show Excel work Please)

1--Calculate the economic order quantity (EOQ) and ordering frequency (OF) for the water filters ($12.79 each), if the cost of placing an order is $5 and carrying costs are 10%. Annual usage is estimated at 1500 units.

2-- Dr. Rubin plans to invest $10,000 annually for three years. Two banks offer a 3 percent interest rate, but Bank A compounds quarterly and Bank B compounds semiannually. To what value would his money grow in each of the two banks? Which bank would you recommend?

Reference no: EM131912496

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