1. Suppose the company's cost of capital or discount rate falls to 8%. What is the cost of using the internal collections system for collecting remittances from customers?

   	a.	approximately $205,000
   	b.	approximately $302,000
   	c.	approximately $256,000
   	d.	approximately $371,000

Remaining Time: 2 hours, 05 minutes, 27 seconds. Question Completion Status: 1 2 3 4 7 8 9 10 11 135 140 15 16 120 You are an analyst in the Treasurer's department with Wilson Inc., a multina accounts at other banks in the U.S. You have been tasked with answering you requested to help in answering the questions. U.S. BANKING INFORMATION Monthly average ledger balance at US Bank $3,500,000.00 Monthly average deposit float $750,000.00 Monthly Service Charge_US Bank $1,000 00 Earnings Credit Rale_ US Bank 0.007 Required Reserves Ratio 0.03 30/365 0.0822 Wire Transfer Cost $15 ACH Cost $0.50 9000 $25,000.00 2 2 2 6 INFO ON COLLECTIONS FROM CUSTOMERS Number of remittances per month Average face value of monthly remittances Mailfloat - in house processing Processing float - in house processing Availability float in house processing Days float Per check Variable cost of in-house Processing Fixed Cost of in-house check processing Days float with lockbox alternative Per check variable cost of lockbox alternative Fixed Cost of lockbox alternative INFO ON DISBURSEMENTS TO SUPPLIERS Disbursements per year Check cost per check 04 52 500.00 4 08 $3.000.00 3500 $150 Sand Sto save and bmit Chick Save All Aromalam 2 3 4 6 7 00 9 10 11 120 130 140 15 16 Uisoursements per year 3500 $1.50 Check cost_ per check ACH costs_per check upfront cost to switch fully to ACH system DAILY NET CASH FLOWS (10 days into November) Day $0.50 $25,000 1 Net Cash Flow 18000 2 20000 3 23000 4 5 25000 26000 6 35000 7 32000 8 25000 9 26000 27000 $500.000.00 0.7 0.3 10 MONTHLY SALES FORECASTS INFORMATION October sales % of sales collected in month of sale % of sales collected in following month % of sales in Cost of goods sold Monthly lease payment Cash position end of October Target cash balance Sales forecast for November Sales forecast for December MISCELLANEOUS INFO Company's Discount Rate 0.75 $125,000.00 $120.000.00 580,000.00 $450,000.00 $350,000.00 129 Remaining Time: 2 hours, 05 minutes, 27 seconds. Question Completion Status: 1 2 3 4 7 8 9 10 11 135 140 15 16 120 You are an analyst in the Treasurer's department with Wilson Inc., a multina accounts at other banks in the U.S. You have been tasked with answering you requested to help in answering the questions. U.S. BANKING INFORMATION Monthly average ledger balance at US Bank $3,500,000.00 Monthly average deposit float $750,000.00 Monthly Service Charge_US Bank $1,000 00 Earnings Credit Rale_ US Bank 0.007 Required Reserves Ratio 0.03 30/365 0.0822 Wire Transfer Cost $15 ACH Cost $0.50 9000 $25,000.00 2 2 2 6 INFO ON COLLECTIONS FROM CUSTOMERS Number of remittances per month Average face value of monthly remittances Mailfloat - in house processing Processing float - in house processing Availability float in house processing Days float Per check Variable cost of in-house Processing Fixed Cost of in-house check processing Days float with lockbox alternative Per check variable cost of lockbox alternative Fixed Cost of lockbox alternative INFO ON DISBURSEMENTS TO SUPPLIERS Disbursements per year Check cost per check 04 52 500.00 4 08 $3.000.00 3500 $150 Sand Sto save and bmit Chick Save All Aromalam 2 3 4 6 7 00 9 10 11 120 130 140 15 16 Uisoursements per year 3500 $1.50 Check cost_ per check ACH costs_per check upfront cost to switch fully to ACH system DAILY NET CASH FLOWS (10 days into November) Day $0.50 $25,000 1 Net Cash Flow 18000 2 20000 3 23000 4 5 25000 26000 6 35000 7 32000 8 25000 9 26000 27000 $500.000.00 0.7 0.3 10 MONTHLY SALES FORECASTS INFORMATION October sales % of sales collected in month of sale % of sales collected in following month % of sales in Cost of goods sold Monthly lease payment Cash position end of October Target cash balance Sales forecast for November Sales forecast for December MISCELLANEOUS INFO Company's Discount Rate 0.75 $125,000.00 $120.000.00 580,000.00 $450,000.00 $350,000.00 129