Your computer manufacturing firm must purchase 20,000 keyboards from a supplier. One supplier demands a payment of $195,000 today plus $10 per keyboard payable in one year. The risk-free interest rate is 5% (the firm may also borrow at this rate). Another supplier will charge $21 per keyboard, also payable in one year.

1. Which offer should your firm take?
2. Suppose the computer manufacturing firm does not have cash to pay upfront. What the firm should do and which offer should it take? Explain, provide necessary computations