Please help, questions A & B

Question 5 (10 points) You are planning to purchase a water filtration system for $85,000 on trade credit terms of net 90 days. You typically make these payments with checks which provide a 5-day float and costs $0.75; however, the supplier is requesting a call to negotiate terms for an ACH payment (assume no up-front cost for ACH payment). In preparation for your meeting you decide to do the following preliminary computations: a. Assume a 9.5% cost of capital and compute the PV of your check payment. (Note: round answer to two decimal places) b. Determine at what discount you would be indifferent between the disbursement methods if the ACH float is 1 day and costs $0.25. (Note: round answer to three decimal places) Blank # 1 Blank # 2 Question 5 (10 points) You are planning to purchase a water filtration system for $85,000 on trade credit terms of net 90 days. You typically make these payments with checks which provide a 5-day float and costs $0.75; however, the supplier is requesting a call to negotiate terms for an ACH payment (assume no up-front cost for ACH payment). In preparation for your meeting you decide to do the following preliminary computations: a. Assume a 9.5% cost of capital and compute the PV of your check payment. (Note: round answer to two decimal places) b. Determine at what discount you would be indifferent between the disbursement methods if the ACH float is 1 day and costs $0.25. (Note: round answer to three decimal places) Blank # 1 Blank # 2