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There is a deal for buying mobile telephones from New York. Following are details : Nr of pieces : 1 . 0 0 0 mobile
There is a deal for buying mobile telephones from New York.
Following are details :
Nr of pieces : mobile phones. Price : $ per unit if
paid immediately
Payment conditions :
Cash payment : $ unit
Cash against Documents : $per unit estimated
maturity time days
Open Account : per unit estimated maturity time
days
The company doesn't have cash money. So if they choose
CASH option they must go and borrow a loan from the bank. If
they do this, bank will give the loan with interest rate and
with maturity or days.
There is no problem for selling the goods. They will be sold
immediately at appropriate maturity time.
QUESTION :
Please show the calculations of the result for options and explain
which one will be to the benefit of the company.
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