Exam #$2$ Spring $2024$

$5.$ Assume you plan to transport by railroad a total inventory of $10,000$ units you purchase for $$16\mathrm{.}00$ per unit. You anticipate several shipments over the course of the year and it will cost $$1\mathrm{.}65$ to ship each unit during the $32$ days the inventory will be in transit from your supplier to your warehouse. If your annual cost of capital is $16\%,$ what is the Total Annual Delivery Cost?

a$.$ $$16,550\mathrm{.}31$

b$.$ $$16,649\mathrm{.}75$

c$.$ $$17,898\mathrm{.}45$

d$.$ $$18,744\mathrm{.}38$

e$.$ $$20,429\mathrm{.}32$