What is this float worth to dell per dollar spent on inputs

Assignment Help Econometrics

Reference no: EM131344960

In 2002, Dell Computer made its suppliers wait 37 days on average to be paid for their goods; however, Dell was paid by its customers immediately. Thus, Dell earned interest on this float, the money that it was implicitly borrowing. If Dell can earn an annual interest rate of 4%, what is this float worth to Dell per dollar spent on inputs?

Reference no: EM131344960

Questions Cloud

Equal chance of winning : Determine what choice they should make using the Hurwicz at α = 0.05 and at = 0.1, to represent their pessimism about winning the contract. What are the expected values? What choice should they make if they thought they had an equal chance of winn..

Which approach has a lower present value of costs : After the last lease payment, you may buy the car for $20,000. If you plan to keep the car until it falls apart (at least a decade) and the interest rate is 10%, which approach has a lower present value of costs?

Systems approach to planning : Module materials and chapters 5 and 11, please work on case studies at the end of chapter 5, pages 327-336. The Trophy Project: Answer questions presented on page 332. The Poor Worker: Answer questions presented on page 334.

Determine the level of responsibility management had : BUS499- From the second e-Activity, determine the level of responsibility management had for the business failure you researched. Provide specific examples to support your response.

What is this float worth to dell per dollar spent on inputs : If Dell can earn an annual interest rate of 4%, what is this float worth to Dell per dollar spent on inputs?

Amount of inventory safety stock : The amount of inventory safety stock for an item carried by an organization must consider all except:

Calculate net exports : Assume an economy has 2 firms. Firm A produces wheat and firm B produces bread. In a given year, firm A produces 50,000 bushels of wheat, sells 20,000 bushels of wheat to firm B at $3 per bushel, Calculate Net Exports. Find Investment

Determining the current it capacity : A new highly desired customer bids for an IT project. The company's IT resource requirements to fulfill this customer request could very exceed current IT capacity up to 50%. The customer offers to pay a premium price for the help. The customer al..

Analyze the change process using the change concept : Write a 3 to 5 paragraph essay analyzing the change process using the change concept literature in your readings. In your essay you should identify the problem and proposed change.

User Account

All Pages