On accepting the position of chief executive officer and chairman of Muse Inc., Dominic Howard changed the

Question:

On accepting the position of chief executive officer and chairman of Muse Inc., Dominic Howard changed the firm’s weekly payday from Monday afternoon to the following Friday afternoon. The firm’s weekly payroll was $100 million, and the cost of short-term funds was 5%. If the effect of this change was to delay check clearing by one week, what annual savings, if any, were realized?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Principles Of Managerial Finance

ISBN: 9781292400648

16th Global Edition

Authors: Chad Zutter, Scott Smart

Question Posted: