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Assume the Time from Acceptance to Maturity on a $10,000,000

question 44

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Assume the time from acceptance to maturity on a $10,000,000 banker's acceptance is 90 days.Further assume that the importing bank's acceptance commission is 1 percent and that the market rate for 90-day B/As is 3.0 percent.Calculate the amount the exporter will receive if he holds it to maturity.


Definitions:

Operating Time

The total time during which a machine, system, or facility is functional and performing its intended tasks.

Product Layout

A type of factory layout where equipment and workstations are arranged in line with the sequence of operations for a specific product.

Equipment Utilization

A measure of how effectively a business or operation uses its equipment in terms of maximizing output and minimizing idle time.

Line Balancing

Line balancing involves arranging a production line so that each workstation has an approximately equal amount of work.

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