You would like to vacation in Hawaii for one week each year. You can buy a time share for a vacation home in Hawaii for $20,000 today and a maintenance fee of $550 per year starting next year. You expect to sell the time share in 10 years for $25,000 Alternatively you can just pay for the week vacation each year (starting next year). Each year will cost you $2,500. If your investments earn 5% per year (compounded annually) which alternative is cheaper and by how much in present value terms? a. Buy the time share it will save you $10,925
b. Pay each year it will save you $11,134
c. Pay each year it will save you $10,005
d. Buy the time share it will save you $10,405

Personal financial planning is the process of creating and achieving financial goals? true or false

Lin corporation has a single product whose selling price is $136 per unit and whose variable expense is $68 per unit. the company’s monthly fixed expense is $32,400. required: 1. calculate the unit sales needed to attain a target profit of $5,000. (do not round intermediate calculations.) 2. calculate the dollar sales needed to attain a target profit of $8,400.

Thomas kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. thomas's fastest-moving inventory item has a demand of 6,000 units per year. the cost of each unit is $100, and the inventory carrying cost is $10 per unit per year. the average ordering cost is $30 per order. it takes about 5 days for an order to arrive, and the demand for 1 week is 120 units. (this is a corporate operation, and the are 250 working days per year.)a) what is the eoq? b) what is the average inventory if the eoq is used? c) what is the optimal number of orders per year? d) what is the optimal number of days in between any two orders? e) what is the annual cost of ordering and holding inventory? f) what is the total annual inventory cost, including cost of the 6,000 units?