Answer:
d. Product financing arrangement.
Explanation:
A business transaction in which an organization sells and agrees to repurchase inventory with the repurchase price equal to the initial or original sales price plus the carrying and financing costs is known as the Product financing arrangement.
A product financing arrangement is more likely to exist when the seller commits to having a third party client purchase the item and then agrees to repurchase the item from the third party client.
It's noteworthy to know, that the seller controls how the item sold under either of the above mentioned situations is analysed and disposed of.
Based on the amounts that you are offered and their present values, the offer you should pick is Birr 10,000 in 12 years.
<h3>Which offer should you pick?</h3>
You should pick the offer with the highest present value.
Offer 1 present value:
= Birr 1,000
Offer 2 present value:
= 10,000 / (1 + 11%)²
= Birr 2,858
Offer 3 present value:
= 25,000 / (1 + 11%)³
= Birr 1,840
In conclusion, option 2 has the highest present value and so should be picked.
Find out more on present value calculations at brainly.com/question/27821989.
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Answer:
D
Explanation:
B and C dont make sense A is that you can never run out of things in stock
