Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Changing payment cycle On accepting the position of chief executive officer and chairman of Muse, Inc., Dominic Howard changed the firm's weekly payday from Monday
Changing payment cycle On accepting the position of chief executive officer and chairman of Muse, Inc., Dominic Howard changed the firm's weekly payday from Monday afternoon to the following Friday afternoon. The firm's weekly payroll was $92 million, and the cost of short-term funds was 6%. If the effect of this change was to delay check clearing by 1 week, what annual savings, if any, were realized? The annual savings that the firm can realize is $ (Round to the nearest dollar.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started