Question: Please show all calculations clearly, if you use excel please show the formulas used. 4. Recently, Valles Galactic Industries has had a breakthrough of success

Please show all calculations clearly, if you use

Please show all calculations clearly, if you use excel please show the formulas used.

4. Recently, Valles Galactic Industries has had a breakthrough of success with their VaRapido electric car. Production, at the moment, seems overwhelmed. You are asked to look at some data that has been collected. One study revealed the following for one specific part: Number of Demands/day Probability 0 .08 1 .37 2 .19 3 .14 4 .22 The VaRapido will be updated next year so the part is expected to have a 400 day existence. The part costs $2500 when bought now or $6000 during the 400 day period. Holding costs are based on interest rate of 8%. If the parts are not used, they can be scrapped at 15% of purchase price. How many parts should be bought in advance

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