Community hospital has annual net patient revenues of 150, Financial Management

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Community hospital has annual net patient revenues of 150

Community hospital has annual net patient revenues of 150 million. At the present time, payments recieved by the hospital are not deposited for six days on average. The hospital is exploring a lock box arrangement will promises to cut the six days to one day. If these funds released by the lock box arrangement can be invested at 8%, what will the annual savings be? Assume the bank fee will be 2,000 per month.

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Financial Management: Community hospital has annual net patient revenues of 150

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