Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help with the following....Ocean Research of San Diego, California, just received a check in the amount of $800,000 from a customer in Bangor, Maine.If

Please help with the following....Ocean Research of San Diego, California, just received a check in the amount of $800,000 from a customer in Bangor, Maine.If the firm processes the check in the normal manner, the funds will become available in 6 days.To speed up this process, the firm could send an employee to the bank in Bangor in which the check is drawn to present it for payment.Such action will cause the funds to become available after 2 days.If the cost of the direct send is $650 and the firm can earn 11% on these funds, what recommendation would you make?Explain.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

Students also viewed these Finance questions