Instructions: Answer ALL questions, showing workings clearly. 1. A London-based firm is negotiating terms of a contract valued at 30,000. The UK firm is considering the options of a cash on delivery (COD) deal or a 90-day credit period. The COD option would include a 7.5% discount on the transaction value. If credit is extended no discount will be offered. Additionally, the following rates are now available Currency rate 0.9125/$ Currency rate 90-day forward rate 1.2055/$ 1.22257 12.40% p.a. Firm WACC Required: Use the information available to determine which is the preferred option to optimize the GBP () receivable. [20 marks]