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Question No. 4. You are the Finance Manager of Dawlance Refrigeration Company. Management is interested to install a new refrigeration plant. Procurement department has obtained
Question No. 4. You are the Finance Manager of Dawlance Refrigeration Company. Management is interested to install a new refrigeration plant. Procurement department has obtained quotation from a supplier, who offered following 3 payment options: a) Cash payment of Rs. 2,500,000 on the delivery of shipment b) Pay Rs. 2,850,000 after 3 years. The prevailing interest rate is 7% per annum c) Pay Rs. 3,200,000 after 5 years, if the prevailing interest rate is 10% per annum. Being the Finance Manager, what will be your recommendation to Management and why
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