What recommendation would you make

Assignment Help Finance Basics
Reference no: EM132035793

Ocean Research of San Diego, California, just received a check in the amount of $800,000 from a customer in Bangor, Maine. If the firm processes the check in the normal manner, the funds will become available in 6 days. To speed up this process, the firm could send an employee to the bank in Bangor in which the check is drawn to present it for payment. Such action will cause the funds to become available after 2 days. If the cost of the direct send is $650 and the firm can earn 11% on these funds, what recommendation would you make? Explain.

Reference no: EM132035793

Questions Cloud

What other passive verbs do you see in the essay : What other passive verbs do you see in this essay? What effect does this linguistic pattern have on you as a reader?
What does the bond currently sell for : It has a YTM of 6% and the coupons are paid semiannually at a 11% annual rate. What does the bond currently sell for? (Show workings)
What is the yield to maturity of this bond : The bond has a coupon rate of 6.3 percent paid annually and matures in 19 years.
What is the content and style of your typical movements : Describe two behavior settings and their characteristic scripts which you believe were typical of environs which helped to shape you
What recommendation would you make : If the cost of the direct send is $650 and the firm can earn 11% on these funds, what recommendation would you make? Explain.
Discuss wwii in asia and the impact of the war on korea : Discuss WWII in Asia and the impact of the war on Korea, China, and Japan. You can focus on India, Korea, or China, or Japan, or Vietnam. You are the director.
What is the net present value of the investment : The investment will cost you $ 6,255 today. If the appropriate Cost of Capital is 10.3 %, what is the Net present Value of the investment?
Explain the impact of world war ii on asian countries : World War II started in 1937 when Japan invaded China. The war continued for eight years, and it influenced the lives of people living in China.
How are savings banks and savings : How are savings banks and Savings & Loans similar but yet also very different.

Reviews

Write a Review

Finance Basics Questions & Answers

  Proportions of debt and equity financing

The required return on debt (before taxes) is 7.5%, the required return on equity is 15%, and the cost of capital is 10%. What are the proportions of debt and equity financing?

  Construct the confidence interval for the mean score

Twenty randomly selected students took the statistics midterm exam. The results from the midterm show that we have a sample mean of 75 and a margin of error of 4.25. Construct the confidence interval for the mean score of all students.

  Importance of arithmetic and geometric weighted returns

Outline and explain the difference between and importance of arithmetic, geometric, and dollar weighted returns as it pertains to a wealth manager's ability.

  Compute ending fifo inventory and cost of goods sold

Compute ending FIFO inventory and cost of goods sold. Assume $90,000 sales, beginning inventory 500 units @ $50, purchase of 400 units @$50; 100 units @$65; 400 units @$80

  Governmental fund statements

Suppose that a government will collect its sales taxes in sufficient time to satisfy available criterion, it would ordinarily recognize revenue from sales taxes in,

  Explain how using a risk-adjusted discount rate improves

explain how using a risk-adjusted discount rate improves capital budgeting decision making compared to using a single

  What is the neighbor total debt

A neighbor spent $25,000 a year for 10 years and had an annual income of $20,000 during this period. What is the neighbor's total debt?

  What is the effective rate of interest it pays

ABC company has average accounts receivable of $8 million. Its credit sales are $48 million a year. To finance its receivable, it factors these receivables.

  The expected future value of an interest rate

The expected future value of an interest rate

  What is the secondary market

What is the secondary market? Why was Fannie Mae created? What does Fannie Mae do?

  Find the critical value of t for an experiment

Using the table of critical values of t in Appendix A-2, find the critical value of t for an experiment in which there are 28 participants, using an alpha level of .05 for a one-tailed test

  Calculate the initial investment associated with purchase

The firm is subject to a 40% tax rate. Calculate the initial investment associated with the proposed purchase of a new grading machine.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd