MGT 455 WEEK 7 QUESTION S 11 13
Your options for shipping $100,000 of machine
parts from Baltimore to Kuala Lumpur, Malaysia, are (1) use a
ship that will take 30 days at a cost of $3,800 or (2) truck the parts
to Los Angeles and then ship at a total cost of $4,800. 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 30% of
the value per year.
a) Which
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MGT 455
31 Aug 2015