Question 1: E11-26 (similar to) Question Help Settings Lawn World, a manufacturer of lawn mowers predicts that it will purchase 240.000 spark plugs next year Lawn Word estimates that 20,000 spark plugs will be required each month. A supplier quotes a price of $9.00 per spark plug. The supplier also offers a special discount option 240.000 spark plugs are purchased at the start of the your discount of 4% off the $500 price wil be given. Lawn World can investits cash at 10% per year. It costs Lawn World $200 to place sach purchase order Read the requirements Requirement 1. What is the opportunity cost of interest forgone from purchasing a 240.000 units at the start of the your instead of in 12 ontwy purchases of 20.000 unts per order Lors begin the coloration for the opportunity cost of interest for one by frut termining the form, then cate the opportunity cost Difference in average investment Investment percentage - Opportunity cost 10% Requirements 1. What is the opportunity cost of interest forgone from purchasing al 240.000 units at the start of the year instead of in 12 monthly purchases of 20.000 units per order? 2. Would this opportunity cost be recorded in the accounting system? Why? 3. Should Lawn Word purchase 240,000 units at the start of the year or 20.000 units each month Show your calculations 4 What other factors should Lowo World consider when making is decision? neeman