$5.$ 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:$$

Supplier A

Supplier B

Unit Price

$$56\mathrm{.}00$

$$57\mathrm{.}75$

Payment Window $($days$)$

$35$

$65$

If the annual cost of capital for the company is $5\%,$ which supplier is offering the better price given the opportunity cost required by making a payment earlier if Supplier A is chosen?

Part $2$

The effective cost of purchasing from Supplier A is $ $?$

$$Part $3$

Supplier A or B is a better supplier in terms of price?