Question: What approximate value should a firm put on being able to permanently reduce the length of its collection period by one day if annual sales

What approximate value should a firm put on being able to permanently reduce the length of its collection period by one day if annual sales (all
on credit) are $5,000,000 and the appropriate opportunity cost is 10 percent annually?

Multiple Choice

O $1,370

O $13,700

O $15,068

O $50,000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The detailed answer for the above question is provided below The approximate value a firm should pu... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...

1. Which of the following statements is CORRECT? a. A firm that makes 90% of its sales on credit and 10% for cash is growing at a constant rate of 10% annually. Such a firm will be able to keep its...

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

What approximate value should a firm put on being able to permanently reduce the length of its collection period by one day if annual sales ( all on credit ) are $ 5 , 0 0 0 , 0 0 0 and the...

Alpine Cupcake Audit Case- Cash Module Question 4: You have concerns about the adequacy of the substantive audit work done by the engagement team. Review in detail the cash confirmation and bank...

Target Corporation: Create Eval financial forecast excel and Word document , please follow these example file Explain why the principal values of calculating financial ratios are to make comparisons...

Kombo Doll Houses incurred the following income and expenses for the year ended 28 February 2019. Item R Wages and salaries 80 000 Water and electricity 32 970 Sales returns 5 000 Insurance 10 600...

Question 2 (12 Marks - 22 Minutes) Okahandja Novelty Limited (ONL) is a wholesale distributor of a variety of imported goods to a range of retail outlets. The company specialises in supplying...

A recent study examined sidewalk rage in an attempt to find insight into angers origins and offer suggestions for anger-management treatments (The Wall Street Journal, February 15, 2011). Sidewalk...

Will an increase in the demand for a monopolists product always result in a higher price? Explain. Will an increase in the supply facing a monopsonist buyer always result in a lower price? Explain.

21. Flotation Costs (LO4) Judson Inc. recently issued new securities to finance a new TV show. The project cost $14 million, and the company paid $725,000 in flotation costs. In addition, the equity...

(1 point) Suppose f(x, y) = (x2 - y, 2xry, r')| Compute the following values: f(-5, 1) f(1,-5) f(0, 6) f(,-5t) f(s +t, s - t)F

For the function f(x,y) below, determine whether there is a value for c making the function continuous everywhere. If so, find it. f(x,y)={c+y3yx2,x>2 c=

With regard to conflict, which of the following statements is accurate? a. A key to a healthy discussion is a focus on personalities, not tasks. b. Conflict is inherently bad. c. The best solution...

CeWe Color Holding AG is a Germany-based photofinishing holding company. It provides retail customers with color prints and offers digital and Internet services. It divides its business activities...

Mr Hans Christian, a senior partner at Harmony Accountancy, has asked an intern to review the issues and the positions the firm should adopt concerning specific rules of revenue recognition adopted...

The Sibelius Company was incorporated on 1 March X1. It carries a commercial activity. The following transactions were undertaken during the first month of operation of Sibelius Co. 1 March 1...

China Petroleum & Chemical Corporation (Sinopec) provides two sets of financial statements in its annual report. One set of financial statements is prepared in accordance with Chinese (PRC)...

China Eastern Airlines (CEA) Corporation Limited prepares a set of financial statements in accordance with IFRS (in Chinese renminbiRMB). Until 2007, the company also provided a reconciliation of...

How can more disclosure in the notes to the financial statements facilitate the analysis of foreign financial statements?