Find the net benefit

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1. Marty's Marbles is considering opening a collection center close to its west coast customers. Marty's annual sales are $91,652,478. Opening a center will cost $10,469 per year but will allow Marty to collect 5 days faster. Marty can earn 5% on the money.

What is the net benefit?

Include a negative sign if it is negative.

b. Our current annual credit sales are $15,696,639m. Using wire transfers instead of depository transfer checks would allow us to get our funds 4 days faster but would cost $12 more per transfer. We can earn 4% on released funds.

Find the net benefit.

Hint: Interest is earned 365 days a year but someone needs to be in the office to do the wire transfer so they are done 250 days a year.

Reference no: EM132531191

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