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i need the answer now b. The Polar Corporation has daily cash receipts of R190,000. A recent analysis of its collections indicated that cus tomers'
i need the answer now b. The Polar Corporation has daily cash receipts of R190,000. A recent analysis of its collections indicated that cus tomers' payments were in the mail an average of 4 days. Once received, the payments are processed in 1 1/2 days. Afte r payments are deposited, it takes an average of 2 1/2 days for these receipts to clear the banking system. If the fi rm's opportunity cost is 11 percent, would it be economically advisable for the firm to pay an annual fee of RM8,000 to reduce collection float by 2 days? (2 marks)
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