Anner is choosing between two mutually-exclusive investment options. These options have absolutely no risk, and Tanner can always borrow and lend at the risk-free rate. Option 1. He can invest $500 now and get (guaranteed) $550 in one year. Option 2. He can invest $600 now and get (guaranteed) $631.40 back later today. Assume the risk-free interest rate is 3.5%. Which investment should Tanner prefer?

Haley photocopying purchases a paper from an out-of-state vendor. average weekly demand for paper is 150 cartons per week for which haley pays $15 per carton. in bound shipments from the vendor average 1000 cartoons with an average lead time of 3 weeks. haley operates 52 weeks per year; it carries a 4-week supply of inventory as safety stock and no anticipation inventory. the vendor has recently announced that they will be building a faculty near haley photocopying that will reduce lead time to one week. further, they will be able to reduce shipments to 200 cartons. haley believes that they will be able to reduce safety stock to a 1-week supply. what impact will these changes make to haley’s average inventory level and its average aggregated inventory value?