If inflation exceeds 10 for the year the rate of inflation

Reference no: EM13483880 , Length: 30

The purchasing department has found an excellent global positioning system circuit card in Germany that can provide your firm with a competitive advantage in the marketplace. Delivery of the circuit cards is 6 months from date of order. The German firm has offered your firm a 2.5% discount on the €3.5 million purchase if paid up front at the time of order; otherwise, the full €3.5 million will be payable in 6 months before delivery, providing that inflation in Germany does not exceed 1.0% for the year. If inflation exceeds 1.0% for the year, the rate of inflation would be added to the €3.5 million. Find out how inflation has been affected after the European Union trade agreement and introduction of the euro. Is inflation likely to increase? Why or why not?

Reference no: EM13483880

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