Assuming you are a new Finance manager in charge of optimizing the working capital of your firm Lopez Global Corporation. You have just received the payment timing of Joseph Centrone Corporation (Table 4) and asked to calculate the float savings generated by transitioning from making their vendor payments on 5th and 20th day to an actively managed (optimized) schedule.

Assume Joseph Centrone Corporation has a WACC of 12%.

Calculate the float savings for each of the vendors (in Table 4) and the total savings you will generate to Joseph Centrone Corporation.

Table #4 - Vendor Payables Timing Vendors Terms 2/10, n/30 net 30 net 20 net 30 1/10,n/30 net 30 2/20, n/90 net 45 1/20, n/30 2/20, n/30 1 Monica Almirall Holdings 2 Tariq Alsurayyi Corp. 3 Jacob Alvarez LLC 4 Dora Berente Asset Management 5 Adriano Bosco Holdings 6 Garrett Bye Services 7 Sebastian Caez & family Associate 8 Cameron Canada global enteerprise 9 Anthony Cantelmo Associates Usual payment Annual Date Purchase 5th $ 2,000,000 20th $ 3,500,000 20th $ 5,800,000 20th $ 6,250,000 $ 5,500,000 20th $ 4,750,000 20th $ 2,500,000 20th $ 4,500,000 5th 6,250,000 20th $ 4,500,000 5th Total $ 45,550,000 Table #4 - Vendor Payables Timing Vendors Terms 2/10, n/30 net 30 net 20 net 30 1/10,n/30 net 30 2/20, n/90 net 45 1/20, n/30 2/20, n/30 1 Monica Almirall Holdings 2 Tariq Alsurayyi Corp. 3 Jacob Alvarez LLC 4 Dora Berente Asset Management 5 Adriano Bosco Holdings 6 Garrett Bye Services 7 Sebastian Caez & family Associate 8 Cameron Canada global enteerprise 9 Anthony Cantelmo Associates Usual payment Annual Date Purchase 5th $ 2,000,000 20th $ 3,500,000 20th $ 5,800,000 20th $ 6,250,000 $ 5,500,000 20th $ 4,750,000 20th $ 2,500,000 20th $ 4,500,000 5th 6,250,000 20th $ 4,500,000 5th Total $ 45,550,000