1. Bio Tron Medical, Inc. Brent Bush, CFO of a medi- cal device distributor, BioTron Medical, Inc., was approached by a Japanese customer, Numata, with a proposal to pay cash (in yen) for its typical orders of 12,500,000 every other month if it were given a 4.5% discount. Numata's current terms are 30 days with no discounts. Using the following quotes and estimated cost of capital for Numata, Bush will compare the pro- posal with covering yen payments with forward con- tracts. Should Brent Bush accept Numata's proposal? Spot rate: 30-day forward rate: 90-day forward rate: 180-day forward rate: Numata's WACC Bio Tron's WACC 111.40/$ 111.00/$ 110.40/$ 109.20/$ 8.850% 9.200%