Question: If a company can implement cash management systems and save three days by reducing remittance time and one day by increasing disbursement time based on

If a company can implement cash management systems and save three days by reducing remittance time and one day by increasing disbursement time based on $2,000,000 in average daily remittances and $2,500,000 in average daily disbursements and its return on freed-up funds is 10%, what is the maximum that it should spend on the system?

Multiple Choice

$2,000,000
$650,000
$850,000
$1,000,000

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