If the firms opportunity cost on savings is 490 percent


Pacific Traders has annual sales of $1,600,000. The firm’s financial manager has determined that using a lockbox will reduce collection time by 2.1 days. If the firm’s opportunity cost on savings is 4.90 percent, what are the savings from using the lockbox?  (Do not round intermediate calculations and final answer to 2 decimal places, e.g. 12.25.)

The savings from using the lockbox are $ __________ per year

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Financial Management: If the firms opportunity cost on savings is 490 percent
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