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PROBLEMS connect selected problems are available with Connect.Please see the preface for more information Basic Problems City Farm Insurance has collection centers across the country to speed up col- lections. The company also makes its disbursements from remote disbursement centers so the firm's checks will take longer to clear the bank. Collection time has been reduced by two days and disbursement time increased by one day because of these policies. Excess funds are being invested in short-term instru- ments yielding 12 percent per annum a. If City Farm has $5 million per y ii collections and $3 million per day 1. sis nt in disbursements, how many dollars has the cash management system freed up? b. How much can City Farm earn in dollars per year on short-term invest- ments made possible by the freed-up cash? s 2. Neon Light Company of Kansas City ships lamps and lighting appliances throughout the country. Ms. Neon has determined that through the establish- ment of local collection centers around the country, she can speed up the collec- tion of payments by three days. Furthermore, the cash management department