Your options for shipping $98,820 of machine parts from Baltimore to Kuala Lumpur, Malaysia, are (1) use a ship that will take 32 days at a cost of $3,230, or (2) truck the parts to Los Angeles and then ship at a total cost of $5,190. 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 $4,260 and also takes 20 days, what is your most economical plan?

1. The daily holding cost of Alternative 1 is = $

(Enter your response rounded to two decimal places.)

2.

The daily cost of faster shipping with Alternative 2 is = $

(Enter your response rounded to two decimal places.)

3.

The daily cost of faster shipping with Alternative 3 is =$

(Enter your response rounded to two decimal places.)

4.

Alternative 1, 2, or 3 is:

is more economical. ??