1. Keabetswe Limited based in Gwanda has sales valued at $30,000,000.00 in Harare and we are given that the current mail float is 4 days, process float is 2 days and clearing float is 21 days. If Keabetswe Limited uses a sales office in Harare to receive sale proceeds in the form of cheques, mail float will be 2 days, process float would be zero and a clearing float of 7 days will be experienced. For the sales office to be situated in Harare, it will cost $100,000.00. Sale proceeds received will be used to reduce the Keabetswe Limited`s overdraft that attracts an interest of 25%.

As a business finance expert, give a report to the management of Keabetswe Limited with sound business reasoning articulated on whether to implement the above-mentioned business proposal or not (25 marks).

1. Keabetswe Limited based in Gwanda has sales valued at $30,000,000.00 in Harare and we are given that the current mail float is 4 days, process float is 2 days and clearing float is 21 days. If Keabetswe Limited uses a sales office in Harare to receive sale proceeds in the form of cheques, mail float will be 2 days, process float would be zero and a clearing float of 7 days will be experienced. For the sales office to be situated in Harare, it will cost $100,000.00. Sale proceeds received will be used to reduce the Keabetswe Limited`s overdraft that attracts an interest of 25%.

As a business finance expert, give a report to the management of Keabetswe Limited with sound business reasoning articulated on whether to implement the above-mentioned business proposal or not (25 marks).

1. Keabetswe Limited based in Gwanda has sales valued at $30,000,000.00 in Harare and we are given that the current mail float is 4 days, process float is 2 days and clearing float is 21 days. If Keabetswe Limited uses a sales office in Harare to receive sale proceeds in the form of cheques, mail float will be 2 days, process float would be zero and a clearing float of 7 days will be experienced. For the sales office to be situated in Harare, it will cost $100,000.00. Sale proceeds received will be used to reduce the Keabetswe Limited`s overdraft that attracts an interest of 25%.

As a business finance expert, give a report to the management of Keabetswe Limited with sound business reasoning articulated on whether to implement the above-mentioned business proposal or not.

Answer rating: 100% (QA)

As a business finance expert I would recommend that Keabetswe Limited should implement the proposed ... View the full answer