b. To reduce this delay, the company is considering daily pickups from the stations. In all, two
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b. To reduce this delay, the company is considering daily pickups from the stations. In all, two cars would be needed and two additional people hired. The cost would be $93,000 annually. This procedure would reduce the overall delay by 2 days. Currently, the opportunity cost of funds is 9 percent, that being the interest rate on marketable securities.
Should the company inaugurate the pickup plan?
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