Two different suppliers have quoted different unit prices and payment windows for a commodity part used by an industrial company. The purchasing manager for the part will decide on which supplier to use based on a price analysis that adjusts for the difference in the payment windows, thereby reflecting the opportunity cost of making earlier payments. The relevant information is as follows:

If the annual cost of capital for the company is 6 percent, which supplier is offering the better price given the opportunity cost required by making a payment earlier if supplier A is chosen?

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Supplier A Supplier B Unit price $55.00 $55.35 Payment window (days)30 60