Question: our options for shipping $ 1 0 1 comma 0 8 0 1 0 1 , 0 8 0 of machine parts from Baltimore to

our options for shipping
$101 comma 080101,080
of machine parts from Baltimore to Kuala Lumpur, Malaysia, are(1) use a ship that will take
2929
days at a cost of
$3 comma 2803,280,
or(2) truck the parts to Los Angeles and then ship at a total cost of
$4 comma 8004,800.
The second option will take only
2222
days. You are paid via a letter of credit the day the parts arrive. Your holding cost is estimated at
3030%
of the value per year.
If you have a third option and it costs only
$4 comma 4204,420
and also takes
2222
days, what is your most economical plan?

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