Suppliers X and Z are competing to sell your company supplies. The full price of supplies from supplier X is $1,300 and they offer these payment plans: 4.9% discount if you pay within 10 days, otherwise pay full price within 230 days. The full price with supplier Z is $1,390 and they offer these payment plans: 5.8% discount if you pay within 25 days, otherwise pay full price within 290 days. Your company financing rate is 7.7% compounded daily. Find the supplier and payment plan that represent the lowest present value of cost.
a. If you buy from supplier X the lowest present value of cost occurs when you pay the full price on day 230
b. If you buy from supplier Z the lowest present value of cost occurs when you pay the discounted price on day 25
c. The lowest possible present value of cost occurs when you pay the discounted price from supplier Z
d. Two choices, B and C, are correct
e. None of the A-B-C choices are correct
Please show working out