Answer the Following Question(s)using the Information Below

question 22

Multiple Choice

Answer the following question(s) using the information below:
The Wood Furniture Company produces a specialty wood furniture product, and has the following information available concerning its inventory items:
Annual demand is 10,000 packages per year.The purchase price per package is $16.
-How many deliveries will Wood Furniture Company require at the economic order quantity?

• A)1.0 delivery
• B)5.1 deliveries
• C)8.2 deliveries
• D)10.0 deliveries
• E)6.8 deliveries

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Definitions:

IRR Function

The Internal Rate of Return function in Excel, used to calculate an investment's profitability by finding the discount rate that makes the net present value of cash flows zero.

Initial Cash Outlay

The immediate amount of cash required to initiate a project or investment, often including costs such as capital expenditures, setup costs, and any other initial expenses.

Cash Inflows

Money or funds entering a business or project from various sources such as sales, investment, or loans.

Minimax Regret Strategy

A decision-making strategy aimed at minimizing the maximum potential regret for the worst-case scenario outcome.