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united express has received 2 bids for delivery for 15000 gallons of fuel per year from A and B. A has provided their estimates in
united express has received 2 bids for delivery for 15000 gallons of fuel per year from A and B. A has provided their estimates in actual dollars, and B has provided theirs in real dollars. Base year is 0, inflation .5% and constant over the next 4 years, MARR=25%
which distributer should the company choose, show all your work.
3) United Express has received two bids for delivery of 15.000 gallons of diesel fuel per year from Distributor A and Distributor & Distributor A has provided their estimates in actual dollars and Distributor has provided their estimates in real dollars. Base year is 0, and inflation is expected to be 0.5% and remain constant over the next 4 years. United Express' MARR is 25% End of Year 0 1 2 Distributor A (AS) $15.000 $15,300 $15,600 $15.900 $16,250 Distributor B (R$). b. $15,000 $15,000 $15,000 $15,000 $15,000 Based on these estimates, which Distributor's bid would you choose? Show all your workStep by Step Solution
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