Aurora Electrical Company of Yellowknife ships wind turbines throughout the country . Mr . Beam , the financial manager has determined that through the establishment of local collection centres around the country , he can speed up the collection of payments by two days . Furthermore , the cash management department of their bank has indicated to him that he can defer payments on his accounts by one day without offending suppliers . The bank has a remote disbursement centre in New Brunswick If Aurora Electrical Company has $1 5 million per day in collections and 50 8 million per day in disbursements how many dollars will the cash management system free up Page 230 2 . If Aurora Electrical Company can earn 4 percent per annum on freed-up funds how much income can be generated ? 3 . If the total cost of the system is $125 000 should it be implemented