Adelivery car had a first cost of $36,000, an annual operating cost of $14,000, and an estimated $5000 salvage value after its 6-year life. due to an economic slowdown, the car will be retained for only 4 years and must be sold now as a used vehicle. at an interest rate of 11% per year, what must the market value of the used vehicle be in order for its aw value to be the same as the aw if it had been kept for its full life cycle?

An allergy products superstore buys 6000 of their most popular model of air filters each year. the price of the air filters is $18. the cost of ordering and receiving shipments is $12 per order. accounting estimates annual carrying costs are 20% of the price. the supplier lead time is 2 days. the store operates 240 days per year. each order is received from the supplier in a single delivery. there are no quantity discounts. what is the store’s minimum total annual cost of placing orders & carrying inventory?