a-c

(Cash management) As CFO of Portobello Scube Diving inc, you are asked to look into the possibility of implementing a system to expedite cash recelpts from clients. Portateollo recelves chock remittances totaling $24 miltion in a year. The firm records and processes 25,000 checks in the same period. The National Bank of Brazil has informed you that it could provide the service of expediting checis and astociated documents for a unit cost of $0.30 por check. After conducting an analysis, you peoject that the cash freed up by the adoption of the system can be invested in a porflolio of near-cash assets that will yeld an annial before-tax return of 11 percent. The company usualy uses a 365 -day year in its financial calculations: - What reduction in check collection time is necessary for Portobello to be neither better nor worse off for having adopled the proposed system? b. How would your solution to part a be affected it Portobello could imvest the freed-up bainces at an expectod annual return of only 6 percent? c. What is the logical explanation for the diflerences in your answers to part a and part b? a. What reduction in check collection fime is necessary for Portobelio to be neather botser nor worse off for having adopted the proposed system? dave (Round to three docimal places)