Question: Inventory value of order = $ 1 0 0 , 0 0 0 . Annual cost of capital is 2 0 % . You own

Inventory value of order = $100,000. Annual cost of capital is 20%. You own theinventory until customer receipt. The order is not time sensitive. Which mode of transportation would you choose to minimize total cost? Assume 365 davs in a year. Please show your work (8 point)Rail, $200, shipping time =21 daysTruck, $300, shipping time =10 daysAir, $600, shipping time =4 days

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