A parts supplier is considering entering into a twoyear contract to make its products available to one of two retail companies. Both retailers are offering an upfront payment of 20,000 . Retailer 1 would pay the 80,000 balance of its total contract amount at the end of the first year. Retailer 2 would pay a total of 102,000 under its contract: 40,000 at the end of the first year and 42,000 at the end of the second year. If the discount rate is \(3 \%\), which contract should the parts supplier enter into if its only consideration is maximizing revenue? Would its decision change if the discount rate was \(7 \%\) ?