Timing of Cash Flows Your company has just entered into a 12-month contract to supply mobile telephones

Question:

Timing of Cash Flows Your company has just entered into a 12-month contract to supply mobile telephones to all its staff. You have been given two payment options. The first is to pay £50,000 every month for 12 months.

The second is to pay £600,000 at the end of the year. Which option should you choose? Why?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Corporate Finance

ISBN: 9781526848093

4th Edition

Authors: David Hillier

Question Posted: