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The municipality of your city is willing to establish a sanitary landfill to dispose solid wastes generated by local households. In addition to economics, what other attributes will you consider if you are a member in the decision-making committee?
Two alternatives are being considered by a food processor for the warehousing and distribution of its canned products in a sales region. These canned products come in standard cartons of 24 cans per carton. The two alternatives are: Alternative A: To have its own distribution system. The administrative costs are estimated at $43,000 per year, and other general operating expenses are calculated at $0.009 per carton. A warehouse will have to be purchased that costs $300,000. Alternative B: To sign an agreement with an independent distribution company that is asking a payment of $0.10 per carton distributed. Assume a study period of 10 years, and that the warehouse can be sold at the end of this period for $200,000. Which alternative should be chosen, if they expect that the number of cartons to be distributed will be 600,000 per year?
Find the numerical value of the factor (P/A,5%,42) using interpolation.
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