Problem:
Wedbing Corp has an opportunity to embark on an extensive one-year project requiring a total outlay of $ 10,000,000 over the course of the undertaking. Their cost of capital is only 5.75% at this time and should remain stable throughout the duration of the project. Wedbing has an excellent relationship with its bank and pays only $ 100 per transaction. Without consideration of any safety stock, calculate the following:
A). C*
B). Average Cash Balance
C). Number of Transactions
D). Total Inventory Cost