use a ship tha truck the part econd option will t holding cost is esti

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
Problem 19P
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Your options for shipping
S100,000 of machine parts from Hamilton to Malaysia, are:
1)
2)
The second option will take only 20 days. You are paid via a letter of credit the day the parts arrive.
Your holding cost is estimated at
use a ship that will take 30 days at a cost of
truck the parts to Vancouver and then ship at a total cost of
$3,800 or
$4,500
10% of the value per year.
a. Calculate the daily holding cost. Round to two decimal places. (if your answer is $90 then put 90.00)
b. Calculate the difference in cost per day between shipping options. Round to two decimal places.
(Round to 2 decimal points $82.19 put 82.19 or $100 put 100.00)
Daily holding cost =
Difference in cost/day in shipping options =
Transcribed Image Text:Your options for shipping S100,000 of machine parts from Hamilton to Malaysia, are: 1) 2) The second option will take only 20 days. You are paid via a letter of credit the day the parts arrive. Your holding cost is estimated at use a ship that will take 30 days at a cost of truck the parts to Vancouver and then ship at a total cost of $3,800 or $4,500 10% of the value per year. a. Calculate the daily holding cost. Round to two decimal places. (if your answer is $90 then put 90.00) b. Calculate the difference in cost per day between shipping options. Round to two decimal places. (Round to 2 decimal points $82.19 put 82.19 or $100 put 100.00) Daily holding cost = Difference in cost/day in shipping options =
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