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5.2 At the date of the order (today), the foreign supplier states that it is willing to grant a 4% discount on the balance of
5.2 At the date of the order (today), the foreign supplier states that it is willing to grant a 4% discount on the balance of 1 500 000 due in 6 months' time if this payment is brought forward to the date of shipment. Determine whether Bioplus Limited should make use of the discount, again assuming they take out forward cover on all foreign currency obligations. Further assume that Bioplus Limited is in a net borrowing position and is able to borrow at 12% per annum from a local bank.
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