Please note that the subject is Financial Management. Course hero only shows courses like finance and financial Accounting.

I need help with these 3 problems. Thank you in advance!!

Problem 1. Leeft Bank offers to reduce the collection time for your company's daily cash receipts by two days with its cash management system. This service will cost you $15,000 per year. Currently, short term money market rates average 5%. If you anticipate annual sales of $46.355 million, would you accept the bank's offer?

Problem 2. Manning Alternatives currently sells to its customers on terms of 2/10, net 30. Its average collection period is 14 days, with 85% currently taking the discount. All sales are credit sales. Upper management has expressed concern about sluggish sales, and the marketing department would like a more attractive credit package. Next year's sales are projected to be $2,600,000. It has been estimated with terms of 3/10, net 60, sales next year would jump to $3,500,000 and 65% of sales would take discount, but the average collection period would increase to 31 days. Manning's contribution margin of 5% would hold this expansion of sales, as would its short-term financing cost of 11%. Should Manning Alternatives initiate the change in credit policy?

Problem 3. Friendly Home Services expects sales of baskets to be $125,000 this year, an ordering cost of $75.00 per order, and carrying costs of $3.00 per basket. The price of a basket is $25.

a.What is the economic ordering quantity?

b.How many orders will be placed during the year?

c.What will the average inventory be?

d.What is total cost of ordering and carrying inventory?