Calculate for the correct answer

Moloy Chakraborty Principal Project Manager| WSP UK LTD High Wycombe, Buckinghamshire, United Kingdom

The daily lease cost for an item is $230. To purchase the item the investment cost is
$1000 and the daily cost is $30. When should you go for purchasing the item

a. When the item is needed for more than 3 days
b. When the item is needed for more than 5 days
c. When the item is needed for more than 6 days
d. For both the cases b and c.

Posted: Aug 28, 2018 12:22 PM

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Kingsley Onuoha Long Range Project Controls Specialist| Center Point Energy Richmond, Tx, United States

Upfront Cost Maintenance Cost
Company $1000 $30/day
Vendor $0 $230/day
Difference $1000 $200/day

Time to purchase $1000/$200 = 5 days
Answer is (B)

Posted: Aug 28, 2018 12:47 PM

Tamer Zeyad Sadiq Assistant Cost Manager| Turner & Townsend Riyadh, Ar Riyad, Saudi Arabia

230D=1000+30D
230D-30D=1000
200D=1000
D=1000/200= 5 days
So, the answer is B

Posted: Aug 29, 2018 4:05 AM

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