Question
Aurora Electrical Company of Yellowknife ships wind turbines throughout the country. Mr. Beam, the financial manager, has determined that through the establishment of a local
Aurora Electrical Company of Yellowknife ships wind turbines throughout the country. Mr. Beam, the financial manager, has determined that through the establishment of a local collection centres around the country. he can speed up the collection of payments by two and one half days. Furthermore, the cash managment department of the companys 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 $2.40 million per day in collections and $1.08 million per day in disbursements. how many dollars will cash management system free up? If Aurora Electrical Company can earn 6% per annum on freed up how much income can be generated?
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