Question
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
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 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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