Question

In: Operations Management

Your options for shipping ?$101 comma 040 of machine parts from Baltimore to Kuala? Lumpur, Malaysia,...

Your options for shipping ?$101 comma 040 of machine parts from Baltimore to Kuala? Lumpur, Malaysia, are? (1) use a ship that will take 29 days at a cost of ?$3 comma 640?, or? (2) truck the parts to Los Angeles and then ship at a total cost of ?$4 comma 670. The second option will take only 22 days. You are paid via a letter of credit the day the parts arrive. Your holding cost is estimated at 30?% of the value per year. ?a) ? Alternative 2 Alternative 1 is more? economical, with a daily holding cost of ?$ nothing. ?(Enter your response rounded to two decimal? places.)

Solutions

Expert Solution

a) Alternative 1 is more economical with a daily holding cost of $2408.35

keosha answered 8 months ago
Next > < Previous

Related Solutions

Suppose that you just joined the Kuala Lumpur office of the Standard Chartered Bank. On your...
Suppose that you just joined the Kuala Lumpur office of the Standard Chartered Bank. On your first day on the job, you have been asked to value a European option on a stock. The stock is currently trading at 60.00 ringgits per share. The 4-month nominal risk-free ringgit interest rate is 6.5%. Your colleague, who was previously working in the stock, has estimated the weekly return volatility (i.e., the volatility based on weekly return) to be 3.1%. (a)       Find the...
You and five other Emiratis were posted for international posting to Kuala Lumput, Malaysia, by your...
You and five other Emiratis were posted for international posting to Kuala Lumput, Malaysia, by your company, Mubadala, an investment company based in Abu Dhabi UAE to open a new office. To benefits you and your fellow Emirati in Kuala Lumpur’s new office you imposed and followed the home country employment law provision of no income tax deduction no employee provident fund contribution, and no requirement to register with the social security and contribute to the Employement Injury Scheme. Your...
Your firm is considering two​ one-year loan options for a $ 489 comma 000 loan. The...
Your firm is considering two​ one-year loan options for a $ 489 comma 000 loan. The first carries fees of 2 % of the loan amount and charges interest of 3.7 % of the loan amount. The other carries fees of 1.8 % of the loan amount and charges interest of 4.5 % of the loan amount. a. What is the net amount of funds from each​ loan? b. Based on the net amount of​ funds, what is the true...
Samples of 36 parts are taken from a manufacturing process that produces machine parts with a...
Samples of 36 parts are taken from a manufacturing process that produces machine parts with a mean diameter of 12.40 cm and a standard deviation of 0.06 cm. If the diameters are normally distributed, what proportion of sample means will have diameters between 12.39 and 12.41 cm?
One year​ ago, your company purchased a machine used in manufacturing for $ 90 comma 000....
One year​ ago, your company purchased a machine used in manufacturing for $ 90 comma 000. You have learned that a new machine is available that offers many advantages and that you can purchase it for $ 170 comma 000 today. The CCA rate applicable to both machines is 40 %​; neither machine will have any​ long-term salvage value. You expect that the new machine will produce earnings before​ interest, taxes,​ depreciation, and amortization​ (EBITDA) of $ 45 comma 000...
One year​ ago, your company purchased a machine used in manufacturing for $ 120 comma 000....
One year​ ago, your company purchased a machine used in manufacturing for $ 120 comma 000. You have learned that a new machine is available that offers many advantages and that you can purchase it for $ 160 comma 000 today. The CCA rate applicable to both machines is 40 %​; neither machine will have any​ long-term salvage value. You expect that the new machine will produce earnings before​ interest, taxes,​ depreciation, and amortization​ (EBITDA) of $ 40 comma 000...
One year​ ago, your company purchased a machine used in manufacturing for $ 110 comma 000....
One year​ ago, your company purchased a machine used in manufacturing for $ 110 comma 000. You have learned that a new machine is available that offers many advantages and you can purchase it for $ 150 comma 000 today. It will be depreciated on a​ straight-line basis over 10 years and has no salvage value. You expect that the new machine will produce a gross margin​ (revenues minus operating expenses other than​ depreciation) of $ 40 comma 000 per...
One year​ ago, your company purchased a machine used in manufacturing for $ 100 comma 000....
One year​ ago, your company purchased a machine used in manufacturing for $ 100 comma 000. You have learned that a new machine is available that offers many advantages and that you can purchase it for $ 150 comma 000 today. The CCA rate applicable to both machines is 20 %​; neither machine will have any​ long-term salvage value. You expect that the new machine will produce earnings before​ interest, taxes,​ depreciation, and amortization​ (EBITDA) of $ 50 comma 000...
One year​ ago, your company purchased a machine used in manufacturing for $ 110 comma 000....
One year​ ago, your company purchased a machine used in manufacturing for $ 110 comma 000. You have learned that a new machine is available that offers many advantages and you can purchase it for $ 150 comma 000 today. It will be depreciated on a​ straight-line basis over 10 years and has no salvage value. You expect that the new machine will produce a gross margin​ (revenues minus operating expenses other than​ depreciation) of $ 40 comma 000 per...
One year​ ago, your company purchased a machine used in manufacturing for $ 115 comma 000....
One year​ ago, your company purchased a machine used in manufacturing for $ 115 comma 000. You have learned that a new machine is available that offers many advantages and you can purchase it for $ 145 comma 000 today. It will be depreciated on a​ straight-line basis over 10 years and has no salvage value. You expect that the new machine will produce a gross margin​ (revenues minus operating expenses other than​ depreciation) of $ 50 comma 000 per...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT