enterprise resource planning

PLEASE SHOW ALL COMPUTATIONS AND LABEL ALL ANSWERS AND VARIABLES

DUE DATE:  MARCH 4, WEDNESDAY;  WORD FORMAT 

1.      Jack works in the hardware section of a department store. A customer comes in and buys 3 gallons of paint and 7 brushes, and pays $69.96, including 6% sales tax. Another customer buys 2 gallons of paint and 3 brushes and pays $42.40, including sales tax. Find the price of a gallon of paint and that of a brush.

2.      The cash flows from two projects under different states of the economy are as follows:

Find the coefficient of correlation between the two projects.

3.      Stewart Company has cost of capital 14%. The following function represents the shortage cost for its net working capital

S =  3 / (x - 9)   for  x > 9

Here S is the shortage cost in thousands of dollars, and x is the level of the net working capital, also in thousands of dollars. Find the following:

(A)  The optimum level of net working capital.

(B)   The financing cost, shortage cost, and total cost at the optimal point.

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

S = 9 e^−x/5

Find the following:

(A)  The optimal level of current assets.

(B)   The shortage, financing, and total annual cost of these assets.