4. Taipei Company, a manufacturer of coffee tables, predicts that it will purchase 240,000 units of red oaks next year. Taipei Company estimates that 20,000 units of red oaks will be required each month. A supplier quotes a price of $10 per unit of red oak. The supplier also offers a special discount option: If all 240,000 units of red oaks are purchased at the start of the year, a discount of 2% off the $10 price will be given. Taipei Company can invest its cash at 10% per year. It costs Taipei Company $300 to place each purchase order.
Required: