Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

YY Corporation has daily collections of P180,000 from a selected foreign customer group. The bank offered to accelerate the clearing time of these collections from

YY Corporation has daily collections of P180,000 from a selected foreign customer group. The bank offered to accelerate the clearing time of these collections from 8 days to 5 days for a quarterly fee of P1,000. YY can invest freed cash into a mutual fund to earn 5% annually. How much is the net benefit/(cost) of this bank service?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Finance

Authors: Lawrence J Gitman, Jeff Madura

1st Edition

0201635372, 9780201635379

More Books

Students also viewed these Finance questions

Question

2. How you can reduce the risk of health problems?

Answered: 1 week ago