I am looking for the answers to part 2, the solution manual only provide the answer to part 1, the search result indicates the answer for part 2 is just a copy of the question. I paid $26.90 for nothing.
Great! This is exactly what I needed
The math in part 1 of the problem is solid. However, it does not answer part 2 of the question - 1) need to calculate the rate of return to see if it is above 12% and need to describe how uncertainty plays a role in the evaluation.
ANSWER WAS CORRECT. THANK YOU
Thanks for the quick response,received a good grade from exam answers. I will definitely use you again.
Wrong answer: Where the whole calculation depend on the Holding cost, and the Holding cost time unit must match the time unit for the Demand Rate. Accordingly, in this case: Holding cost = 1% x Production cost per unit = .01 x 50= £0.5 per unit per month =12 x 0.5= £6 per unit per year