Josh Ritchey has just been hired as a cost engineer
by a large airlines company. Josh’s first idea is to stop
giving complimentary cocktails, wine, and beer to the
international flying public. He calculates this will save
5,000,000 drinks per year, and each drink costs $0.50, for
a total of $2.5 million per year. Instead of complimentary
drinks, Josh estimates that the airlines company can
sell 2,000,000 drinks at $5.00 per drink. The net savings
would amount to $12.5 million per year! Josh’s boss
really likes the idea and agrees to give Josh a lump-
sum bonus now equaling 0.1% of the present equivalent
worth of three years of net savings. If the company’s
MARR is 20% per year, what is Josh’s bonus?
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Answer:
sorry I don't understand
Answered by
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Answer:
What have you written its so big what do you want to ask?
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