A proposed lockbox system can eliminate 3 days of float


Aqua system Inc. expects to have $13,179,500 in credit sales during the coming year. Currently, all checks are sent to the home office. A proposed lockbox system can eliminate 3 days of float, releasing funds which, when invested, will earn 13.65 percent per year. What annual savings can Aqua System expect if the system is implemented? Use a 365-day year.

Solution Preview :

Prepared by a verified Expert
Finance Basics: A proposed lockbox system can eliminate 3 days of float
Reference No:- TGS02208509

Now Priced at $10 (50% Discount)

Recommended (97%)

Rated (4.9/5)