$6.$ Assume that you pay for this additional inventory by drawing on a line of credit. If the interest rate on this credit line is $6\mathrm{.}5\%$ per annum, and you carry this balance for one year, how much additional interest expense will you have incurred due to this increase in safety stock?

Additional Interest $=$ $$45,900$ x $\mathrm{.}065=$ $$2983\mathrm{.}5$

$7.$ What other concerns$/$issues do you need to take into consideration in order to decide whether or not to make this investment?