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E. Suppose that a South American import/export company has offered PBK a deal for the next year. PBK can buy a years’ worth of coffee directly from South America for $20 per bag and a fixed cost for delivery of $500. Assume the estimated cost for inspection and storage is $1 per bag per month and the cost of capital is approximately 2 percent per month. Should PBK order from Phish Roasters or the South American import/export company? Quantitatively justify your Ans
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E. Suppose that a South American import/export company has offered PBK a deal for the next year. PBK...
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