Question
1.Marty's Marbles is considering opening a collection center close to its west coast customers. Marty's annual sales are $91,652,478. Opening a center will cost $10,469
1.Marty's Marbles is considering opening a collection center close to its west coast customers. Marty's annual sales are $91,652,478. Opening a center will cost $10,469 per year but will allow Marty to collect 5 days faster. Marty can earn 5% on the money.
What is the net benefit?
Include a negative sign if it is negative.
b.Our current annual credit sales are $15,696,639m. Using wire transfers instead of depository transfer checks would allow us to get our funds 4 days faster but would cost $12 more per transfer. We can earn 4% on released funds.
Find the net benefit.
Hint: Interest is earned 365 days a year but someone needs to be in the office to do the wire transfer so they are done 250 days a year.
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