Question
Tokyo Corporation plans to establish a lockbox arrangement that would reduce its collection float by five (5) days. TC normally receives an average of P160,000
Tokyo Corporation plans to establish a lockbox arrangement that would reduce its collection float by five (5) days. TC normally receives an average of P160,000 in payments each day. If its opportunity cost is 12 percent, how much should TC be willing to pay each month for the lockbox arrangement?
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Investment Science
Authors: David G. Luenberger
2nd Edition
0199740089, 978-0199740086
