Your company wants to purchase 10,000 crawfish from a supplier. One supplier demands a payment of $100,000 today plus $10 per crawfish payable in one year. Another supplier will charge $21 per crawfish, also payable in one year. If the risk-free rate is 6%, which offer should you take?

Answer rating: 100% (QA)

To determine which offer is better we need to compare the present value of the total cost from each ... View the full answer