Question
can you show work! Suppliers X and Z are competing to sell your company supplies. The full price of supplies from supplier X is $1,000
can you show work!
Suppliers X and Z are competing to sell your company supplies. The full price of supplies from supplier X is $1,000 and they offer these payment plans: 5.4% discount if you pay within 25 days, otherwise pay full price within 250 days. The full price with supplier Z is $1,070 and they offer these payment plans: 3.5% discount if you pay within 25 days, otherwise pay full price within 180 days. Your company financing rate is 9.8% compounded daily. Find the supplier and payment plan that represent the lowest present value of cost.
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