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Mountain Home Clinic has a pretty consistent business and produces an annual revenue of $8,000,000. Their carrying cost of accounts receivable is 9%. Their average

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Mountain Home Clinic has a pretty consistent business and produces an annual revenue of $8,000,000. Their carrying cost of accounts receivable is 9%. Their average collection period is 70 days. What is Mountain Home Clinic's annual carrying cost of capital? (10 points) Mountain Home Clinic is considering upgrading their computer systems to facilitate automated documentation and claims processing. It is anticipated this change can reduce the average collection period to 45 days. What would Mountain Home Clinic's annual carrying cost of accounts receivable be after this change? (5 points) Mountain Home Clinic estimates the proposed change would cost $55,000 every year for software, programming and additional IT support. Do you implement the change? Why or why not? Support your answer with (numerical) evidence for full credit. (10 points) Mountain Home Clinic has a pretty consistent business and produces an annual revenue of $8,000,000. Their carrying cost of accounts receivable is 9%. Their average collection period is 70 days. What is Mountain Home Clinic's annual carrying cost of capital? (10 points) Mountain Home Clinic is considering upgrading their computer systems to facilitate automated documentation and claims processing. It is anticipated this change can reduce the average collection period to 45 days. What would Mountain Home Clinic's annual carrying cost of accounts receivable be after this change? (5 points) Mountain Home Clinic estimates the proposed change would cost $55,000 every year for software, programming and additional IT support. Do you implement the change? Why or why not? Support your answer with (numerical) evidence for full credit. (10 points)

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