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Grass Eaters, a manufacturer of lawn mowers, predicts that it will purchase 2 6 4 , 0 0 0 spark plugs next year. Grass Eaters

Grass Eaters, a manufacturer of lawn mowers, predicts that it will purchase 264,000 spark plugs next year. Grass Eaters estimates that 22,000 spark plugs will be required each month. A supplier quotes a price of $7.00 per spark plug. The supplier also offers a special discount option: if all 264,000 spark plugs are purchased at the start of the year, a discount of 4% off the $7.00 price will be given. Grass Eaters can invest its cash at 10% each per year. It costs Grass Eaters $250 to place each purchase order.
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