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.If you have a third option and it costs only

$4,000

and also takes

20

days, what is your most economical plan? Assume 365 days per year.

Part 2The daily holding cost of Alternative 1 is

$________.

(Enter your response rounded to two decimal places.)

The daily holding cost of Alternative 2 is

$________.

(Enter your response rounded to two decimal places.)

The daily holding cost of Alternative 3 is

$________.

(Enter your response rounded to two decimal places.)