By changing suppliers, Brakes and Bikes (Pty) Ltd. can buy the same brand of mount R100 per bicycle less than they used to from their existing supplier. In an attempt to retain Brakes and Bikes (Pty) Ltd. as a customer, the existing supplier has offered a 15% discount to Brakes and Bikes (Pty) Ltd. Brakes and Bikes (Pty) Ltd. has estimated that the demand for mountain bikes in Ap be 120 bicycles and plans on buying 120 mountain bikes from a single supplier on 1 The company has calculated that it could buy the 120 mountain bikes for April 20 existing supplier at a total cost of R127 500 (after discount). Brakes and Bikes (Pty) Ltd. sells mountain bikes at R2 500 each. There was no openir inventory for April 2015. 

REQUIRED 

a. Calculate the net relevant cash flows associated with each of the following two alte 

i. Continue buying mountain bikes from the existing supplier 

ii. Buy the mountain bikes from the new supplier