Ford Company's cost of capital is 13%. It has invested x (million dollars) in current assets. The

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Ford Company's cost of capital is 13%. It has invested x (million dollars) in current assets. The following function represents the shortage cost of its current assets:

S = 9 e- ^x/3

Find the following:
(a) The optimal level of current assets.

(b) Total annual cost of these assets at the optimal level.

Related Book For answer-question

Cost Management Measuring Monitoring and Motivating Performance

ISBN: 978-0470769423

2nd edition

Authors: Leslie G. Eldenburg, Susan K. Wolcott

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Posted Date: Aug 29, 2018 08:17 AM

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Ford Company's cost of capital is 13%. It has invested x (million dollars) in current assets. The

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S 9 e x 3 Total cost 013 9ex1 3 dI ... View the full answer

Cost Management Measuring Monitoring and Motivating Performance

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