CG Beadix has daily average check collections of $101289, and it takes the firm 6 days before
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CG Beadix has daily average check collections of $101289, and it takes the firm 6 days before it can completely process those checks. An automated lockbox system that costs $303465 a year would reduce the processing time to 3 days. Beadix's opportunity cost of short-term funds is 12%. What is the net pretax benefit of the change? Round to the nearest dollar. Make sure to include a negative sign if it is negative.
Related Book For
Contemporary Financial Management
ISBN: 9780324289114
10th Edition
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
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