ACE Design has daily sales of $52,000. The financial management team has determined that a lockbox would reduce the collection time by 2.9 days. Assuming the company can earn 6.8 percent interest per year, what are the savings from the lockbox? (Round answer to 2 decimal places, e.g. 12.25.) Savings from the lockbox $__________ per year

ACE Design has daily sales of $52,000. The financial management team has determined that a lockbox would reduce the collection time by 2.9 days. Assuming the company can earn 6.8 percent interest per year, what are the savings from the lockbox? (Round answer to 2 decimal places, e.g. 12.25.) Savings from the lockbox $__________ per year

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter13: Other Financing Alternatives

Section: Chapter Questions

Problem 1bM

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