Question
The firm's average accounts receivable is $3,000,000 and is financed by an8% annual interest bank loan. The firm is considering a regional lockbox system which
The firm's average accounts receivable is $3,000,000 and is financed by an8% annual interest bank loan. The firm is considering a regional lockbox system which it believes will reduce accounts receivable by 30%. The annual cost of the system is $25,000. What is the estimated net annual savings to the firm from implementing the lockbox system and should the firm use the system?
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Elements Of Financial Risk Management
Authors: Peter Christoffersen
2nd Edition
0128102357, 9780128102350
