A container of ball-bearings valued at $250,000, currently located in Houston, TX, needs to be delivered to the Morton, IL, plant. The standard shipment method takes four days. However, for an additional charge of $500, the container can be sent overnight to arrive one day later. The annual holding cost rate for this type of item has been estimated at 25%. Which option is more economical?

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The Answer of A container of ball-bearings valued at $250,000, currently located in Houston, TX, needs to be delivered to the Morton, IL, plant. The standard shipment method takes four days. However, for an additional charge of $500, the container can be sent overnight to arrive one day later. The annual holding cost rate for this type of item has been estimated at 25%. Which option is more economical?

A Container of Ball-Bearings Valued at $250,000, Currently Located in Houston