TD GARDEN Company has collection centers across the country to speed up collections. TD GARDEN also makes its disbursements from remote disbursement centers so checks written by TD GARDEN take longer to clear the bank. Collection time has been reduced by two days and disbursement time increased by one day because of these changes. Excess funds can be invested in securities earning 12% per annum.

REQUIRED: a. If TD GARDEN has P5 million collections per day and P3 million disbursements per day, how much has the implemented cash system freed up? b. How much can TD GARDEN earn per year on securities made possible by the change in the system? c. If the total cost of the collection center to be implemented is P700,000 per year, should it be implemented by TD GARDEN? d. If the total cost of the disbursement center to be implemented is P800,000 per year, should it be implemented by TD GARDEN? e. If both systems are integrated in a way that one cannot operate without the other, and its total implementation costs is P1,500,000, should the integrated cash management system be implemented?