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a manufacturer of lawn mowers, predicts that it will purchase 2 5 2 , 0 0 0 spark plugs next year. Ever Lawn estimates that

a manufacturer of lawn mowers, predicts that it will purchase 252,000 spark plugs next year. Ever Lawn estimates that 21,000 spark plugs will be required each month. A supplier quotes a price of $8.00 per spark plug. The supplier also offers a special discount option: If all 252,000 spark plugs are purchased at the start of the year, a discount of 4% off the $8.00 price will be given. Ever Lawn can invest its cash at 10% per year. It costs Ever Lawn $200 to place each purchase order.

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