Solve the following problem normarsquos cat food of shell

Assignment Help Finance Basics

Reference no: EM13451537

Solve the following problem. Norma’s Cat Food of Shell Knob ships cat food throughout the country. Norma has determined that through the establishment of local collection centers around the country, she can speed up the collection of payments by two and one-half days. Furthermore, the cash management department of her bank has indicated to her that she can defer her payments on her accounts by one-half day without affecting suppliers.The bank has a remote disbursement center in Iowa.

If the company has $5 million per day in collections and $3 million per day in disbursements, how many dollars will the cash management system free up? Justify your answers.
If the company can earn 8 percent per annum on freed-up funds, how much will the income be? Justify your answers.
If the annual cost of the new system is $800,000, should it be implemented? Explain why or why not?

Reference no: EM13451537

Questions Cloud

Select a purchase you have made recently and describe in : write a 800- to 1050-word paper in which you relate consumer behavior to marketing.in your paper address the

How might the process of researching consumer behavior lead : how might the process of researching consumer behavior lead one to the idea of offering clothing-optional cruises? what

Assume the firm has production technology shown below for : suppose a firm has the production technology shown below for goods 1 and goods 2 and respond to the following with an

Solve the following problem normarsquos cat food of shell : solve the following problem. normarsquos cat food of shell knob ships cat food throughout the country. norma has

Suppose that a nursing home has two categories of payers : suppose that a nursing home has two categories of payers. medicaid pays 60 per day and private-pay patients pay the

A written analysis of the purchase process of your chosen : a photograhic presentation of the purchase process which consumer does through for a product or service of your

Goals and deliverables describe the goals you have set for : success university su is a medium sized undergraduate institution located in southern california.nbsp su offers

Would you categorise green engineering as quick fix program : green engineering has proven to be an obstacle to many industries. the reason is their misunderstanding of the

User Account

All Pages