The average lead time of a unit of product through a manufacturing station is 18 minutes. The average work in process inventory
1 answer:
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Answer: 170.69
Explanation:
Given that,
Anticipated total cost (Future value) = $158.82 million
= $158,820,000
Saving per month = $590,000
Interest received on savings = 6 percent (compounded monthly)
Future value = $158,820,000
Therefore,
n = 170.69 months
Company have to wait before expanding its operations for 170.69 months.