Problem:
If a company can implement cash management systems and save three days by reducing remittance time and one day by increasing disbursement time based on $2,000,000 in average daily remittances and $2,500,000 in average daily disbursements and their return on freed-up funds is 10%,
Required:
Question: What is the maximum that they should spend on the system?
$2,000,000
$650,000
$850,000
$1,000,000
Note: Please describe comprehensively and provide step by step solution.