YY Corporation has daily collections of P180,000 from a selected foreign customer group. The bank offered to accelerate the clearing time of these collections from 8 days to 5 days for a quarterly fee of P1,000. YY can invested freed cash into a mutual fund to earns 5% annually. How much is the net benefit/(cost) of this bank service?

Answer rating: 100% (QA)

To determine the net benefit or cost of the bank service we need to compare the pot... View the full answer