Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN: 9781337395083
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
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Financial Accounting Question please answer

Golden Supplies Inc. carries an average annual
inventory of $4.5 million. If it estimates the cost of
capital at 12%, storage costs at 8%, and risk costs at
5%, what does it cost per year to carry this inventory?
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Transcribed Image Text:Golden Supplies Inc. carries an average annual inventory of $4.5 million. If it estimates the cost of capital at 12%, storage costs at 8%, and risk costs at 5%, what does it cost per year to carry this inventory?
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