Question: 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
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 8\%bich 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.) is a better supplier in terms of price
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