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show calculation Lunarline Inc. just bought 100 spools of wire from Moss Electronics. Lunarline, Inc. has been offered the 3 possible payment options described in

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Lunarline Inc. just bought 100 spools of wire from Moss Electronics. Lunarline, Inc. has been offered the 3 possible payment options described in the table. If the discount rate is 7.9%, which of the assertions is true?

A. Moss Electronics should prefer option A more than option B and Moss Electronics should prefer option A more than option C

B. Moss Electronics should prefer option A more than option B, and Moss Electronics should prefer option C more than option A

C. Moss Electronics should prefer option B more than option A, and Moss Electronics should prefer option A more than option C

D. Moss Electronics should prefer option B more than option A and Moss Electronics should prefer option C more than option A

Option

Terms of payment (amount and timing) from Lunarline, Inc. to Moss Electronics

A

$4,700 in 1 year from today

B

$5,600 in 3 years from today

C.

$6,800 in 6 years from today

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