chapter 19, solution 19.13

Discussion in 'SA5' started by r_v.s, Nov 19, 2014.

  1. r_v.s

    r_v.s Member

    I know this sounds silly...but should it not be 100000/ NQ?? How is it 100000/ q?

    also what is carrying cost of capital that is mentioned after question 19.15?
     
    Last edited by a moderator: Nov 19, 2014
  2. Colin McKee

    Colin McKee ActEd Tutor Staff Member

    No I dont think so. If I need to raise 100k in a year, and each sale raises Q, then I will need to sell 100k/Q times in the year ??

    the carrying cost of capital is just the cost of capital referred to previously. Dont know why I added "carrying" the second time.
     

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