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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 phones. Price:
There is a deal for buying mobile telephones from New York. Following are details :Nr of pieces: mobile phones. Price: $ per unit if paid immediatelyPayment conditionsCash payment:$ unitCash against Documents$ per unit estimated maturity time daysOpen Account: per unit estimated maturity time daysThe 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 timeQUESTION :Please show the calculations of the result for the options and explain which one will be to the benefit of the company.
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