Atlas Long-Haul Transportation is considering installing Valutemp temperature loggers in all of its refrigerated trucks for monitoring tempera­tures during transit. If the systems will reduce in­surance claims by $100,000 in each of the next 2 years, how much should the company be willing to spend now if it uses an interest rate of 12% per year?

What will be an ideal response?


P = 100,000((P/A,12%,2)
= 100,000(1.6901)
= $169,010

Trades & Technology

You might also like to view...

84.02 + 4.484 + 7.3495 = ____.

A. 80.3894 B. 95.8343 C. 90.3748 D. 95.8535

Trades & Technology

Which of the following are common barriers to entry?

A) economies of scale B) absolute unit-cost advantages C) capital access and costs D) all of the above

Trades & Technology

When a boot fails, its grease leaks out.

Answer the following statement true (T) or false (F)

Trades & Technology

The waves in the wool fiber are called crimp.

Answer the following statement true (T) or false (F)

Trades & Technology