6. A company has a central billing system. Its daily collections on an average are 500,000. The...

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6. A company has a central billing system. Its daily collections on an average are 500,000. The total time for administering the collection is 6 days.

(a) If a firm's required rate of return is 10 per cent, what is the cost of the system to the firm?

(b) If the management designs a lock-box system that reduces the lag by 3 days, what is the reduction in cash balances?

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Financial Management

ISBN: 9789325982291

11th Edition

Authors: I.M. Pandey

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Question Posted: Oct 23, 2024 12:02 PM

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6. A company has a central billing system. Its daily collections on an average are 500,000. The...

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Financial Management

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