Complete 14-14

What is the cost of the marginal bad debts? d. Do you recommend this change in credit terms? Why or why not? LG 6 P14-14 Float Simon Corporation has daily cash receipts of $65,000. A recent analysis of its collections indicated that customers' payments were in the mail an average of 2.0 days. Once received, the payments are processed in 2.0 days. After payments are de- posited, it takes an average of 2.5 days for these receipts to clear the banking system. a. How much collection float (in days) does the firm currently have? b. If the firm's opportunity cost is 9%, would it be economically advisable for the Sp firm to pay an annual fee of $16,500 to reduce collection float by 3 days? Ex- plain why or why not. LG 6 P14-15 Lockbox system Eagle Industries believes that a lockbox system can shorten its ac