Annual increase in income realized

Reference no: EM1362835

Your firm has $45.0 million invested in accounts receivable, which is 90 days of net revenues. If this value could be reduced to 50 days, what annual increase in income would your firm realize if the increase in cash could be invested at 7.5 percent?

A. $20.0 million

B. $1.5 million

C. $1.875 million

D. None of the above

Reference no: EM1362835

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