Dear Sir,
I read with interest Harry Kwow's letter, particularly with respect to investing the $4.3mn for a year at the coupon rate of 4.7 percent. However, the bad thing about this proposal is that the interest rates in Solomon Islands are very low. At present, I think, they are less than 1 percent. If we factor in the inflation and exchange rate argument, the returns on the $4.3mn investment will yield negative returns in real terms. In short, to delay supplying schools with computers now, Antech will have to pay more to his overseas supplier to acquire an "x" quantity of computers than if he were to buy that "x" quantity of computers from his overseas supplier last year or year before.
Regards!
Antech Airware Computers
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