Question: only need to answer the the chart System B b. Complete the following chart to determine which inventory system has the lowest PV, i.e. the

 only need to answer the the chart System B b. Complete
the following chart to determine which inventory system has the lowest PV,
only need to answer the the chart System B

b. Complete the following chart to determine which inventory system has the lowest PV, i.e. the lowest total cost after taking into consideration the cost of capital. Note: The information in the first four columns is the same as the previous chart. However, the timing of each order is different so the details of each order is needed to calculate the present value equivalent. The work is completed for you for the existing system and System 'A': Please complete the chart for System 'B'. PVF PV Existing System Order Delivered Order Inventory Number Quantity Cost 0 4,000 $ 24,000 2 24.0 4,000 $ 24,000 3 48.0 4,000 $ 24,000 4 72.0 4,000 $ 24,000 5 96.0 4,000 $ 24,000 6 120.0 4,000 $ 24,000 7 144.0 4,000 $ 24,000 8 168.0 4,000 $ 24,000 9 192.0 4,000 $ 24,000 10 216.0 4,000$ 24,000 11 240.0 4,000 $ 24,000 12 264.0 4,000$ 24,000 13 288.0 4,000$ 24,000 14 312.0 4,000$ 24,000 15 336.0 4,000$ 24,000 Ordering Costs $ 1,500 Holding Costs $ 4,300 TOTALS $365,800 Payment Due att 25 49 73 97 121 145 169 193 217 241 265 289 313 337 361 360 360 0.98915989 $ 23,740 0.97897221 $ 23,495 0.96899225$ 23,256 0.95921371 $ 23,021 0.94963055 $ 22,791 0.94023699 $ 22,566 0.93102745 $ 22,345 0.92199656 $ 22,128 0.91313920 $ 21,915 0.90445039 $ 21,707 0.89592538 $ 21,502 0.88755958 $ 21,301 0.87934856 $ 21,104 0.87128807 $ 20,911 0.86337402 $ 20,721 0.86370090 $ 1.296 0.86370090 $3,714 $ 337 513 System A Order Number PVF PV 1 Delivered att 0 60 120 180 240 300 2 3 4 5 61 Order Inventory Quantity Cost 10,000$ 49,000 10,000 $ 49,000 10,000 $ 49,000 10,000 $ 49,000 10,000 $ 49,000 10,000$ 49,000 Payment Due att 25 85 145 0.98915989 $ 48,469 0.96407818 $ 47,240 0.94023699 $ 46,072 0.91754651 $ 44,960 0.89592538 $ 43,900 0.87529976 $ 42,890 205 265 325 Ordering Costs Holding Costs $ 600 $ 10,750 $ 305,350 360 360 0.86370090$ 518 0.86370090 $ $ 283,333 9,285 I TOTALS System B Order Number 1 Delivered att = Order Quantity Inventory Cost Payment Due att PVF PV 2 3 Ordering Costs Holding Costs b. Complete the following chart to determine which inventory system has the lowest PV, i.e. the lowest total cost after taking into consideration the cost of capital. Note: The information in the first four columns is the same as the previous chart. However, the timing of each order is different so the details of each order is needed to calculate the present value equivalent. The work is completed for you for the existing system and System 'A': Please complete the chart for System 'B'. PVF PV Existing System Order Delivered Order Inventory Number Quantity Cost 0 4,000 $ 24,000 2 24.0 4,000 $ 24,000 3 48.0 4,000 $ 24,000 4 72.0 4,000 $ 24,000 5 96.0 4,000 $ 24,000 6 120.0 4,000 $ 24,000 7 144.0 4,000 $ 24,000 8 168.0 4,000 $ 24,000 9 192.0 4,000 $ 24,000 10 216.0 4,000$ 24,000 11 240.0 4,000 $ 24,000 12 264.0 4,000$ 24,000 13 288.0 4,000$ 24,000 14 312.0 4,000$ 24,000 15 336.0 4,000$ 24,000 Ordering Costs $ 1,500 Holding Costs $ 4,300 TOTALS $365,800 Payment Due att 25 49 73 97 121 145 169 193 217 241 265 289 313 337 361 360 360 0.98915989 $ 23,740 0.97897221 $ 23,495 0.96899225$ 23,256 0.95921371 $ 23,021 0.94963055 $ 22,791 0.94023699 $ 22,566 0.93102745 $ 22,345 0.92199656 $ 22,128 0.91313920 $ 21,915 0.90445039 $ 21,707 0.89592538 $ 21,502 0.88755958 $ 21,301 0.87934856 $ 21,104 0.87128807 $ 20,911 0.86337402 $ 20,721 0.86370090 $ 1.296 0.86370090 $3,714 $ 337 513 System A Order Number PVF PV 1 Delivered att 0 60 120 180 240 300 2 3 4 5 61 Order Inventory Quantity Cost 10,000$ 49,000 10,000 $ 49,000 10,000 $ 49,000 10,000 $ 49,000 10,000 $ 49,000 10,000$ 49,000 Payment Due att 25 85 145 0.98915989 $ 48,469 0.96407818 $ 47,240 0.94023699 $ 46,072 0.91754651 $ 44,960 0.89592538 $ 43,900 0.87529976 $ 42,890 205 265 325 Ordering Costs Holding Costs $ 600 $ 10,750 $ 305,350 360 360 0.86370090$ 518 0.86370090 $ $ 283,333 9,285 I TOTALS System B Order Number 1 Delivered att = Order Quantity Inventory Cost Payment Due att PVF PV 2 3 Ordering Costs Holding Costs

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