Question: Answer to this question Problem 4 Question Help Two different suppliers have quoted different unit prices and payment windows for a commodity part used by

Answer to this question Problem 4 Question Help

Answer to this question

Problem 4 Question Help 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 $52.00 $52.70 Payment Window (days) 20 40 If the annual cost of capital for the company is 4%, which supplier is offering the better price given the opportunity cost required by making a payment earlier if Supplier A is chosen? The effective cost of purchasing from Supplier A is $ per unit. (Enter your response rounded to two decimal places.) Enter your answer in the answer box and then click Check Answer. 1 part remaining Clear All Check Answer Solution manuais Tor textDOOKS See all Coupons, samples and special offers sty X W MacBook 0 F2 ODO DOO F4 F5 F6 F7 FB 59 FIO $ % & *

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