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A distribution center wants to evaluate an alternative product tracking system. The system has an initial cost of $500,000 and a useful life of 7
A distribution center wants to evaluate an alternative product tracking system. The system has an initial cost of $500,000 and a useful life of 7 years. The operating cost is estimated to be $550 per metric ton of product moved per day. The center can handle between 30 and 50 tons per day. Analyze the sensitivity of the PW to changes in a 10-metric-ton increment of product moved. Use an interest rate of 3% per year and 200 days of work per year.
Find the PW of 3 options.
Please use excel if not that is fine
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