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What annual savings can aqua system expect

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Reference no: EM131410371

Finance: Lock-box system, cost of trade credit

Question

Aqua System Inc. expects to have $25,623,100 in credit sales during the coming year. Currently all checks are sent to the home office. A proposed lockbox system can eliminate 4 days of float, releasing funds which, when invested, will earn 5.79 percent per year. What annual savings can Aqua System expect if the system is implemented? Use a 365-day year. Round the answer to two decimal places.

Reference no: EM131410371

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