The Fast Reader Company supplies bulletin board services to numerous hotel chains nationwide. The owner of the
Question:
The Fast Reader Company supplies bulletin board services to numerous hotel chains nationwide. The owner of the firm is investigating the desirability of employing a billing firm to do her billing and collections. Because the billing firm specializes in these services, collection float will be reduced by 17 days. Average daily collections are
$10,200, and the owner can earn 7.4% annually (expressed as an APR with monthly compounding) on her investments. If the billing firm charges $500 per month, should the owner employ the billing firm?
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9781292437156
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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