What will the annual savings be

Assignment Help Financial Management

Reference no: EM13909276

Community Hospital has annual net patient revenues of $150 million. At the present time, payments received by the hospital are not deposited for six days on average. The hospital is exploring a lock-box arrangement will promises to cut the six days to one day. If these funds released by the lock-box arrangement can be invested at 8%, what will the annual savings be? Assume the bank fee will be $2,000 per month.

Reference no: EM13909276

Questions Cloud

What is the liability-loan charges compound interest : What is the liability after 10years if the loan charges simple interest? What is the liability after 10 years if the loan charges compound interest?

Combed through the pages of the chapter : Combed through the pages of the chapter and cannot locate an answer for the following question: In a joint production process, the allocation of joint (common) costs to the joint products is needed: A. To determine whether the firm in question shou..

The property is a specialty retail property : The property is a specialty retail property (which is interesting, but not relevant to the solution). Mr. Beyer is planning to acquire the property, hold it for five years and then sell it at the end of the fifth year. The first year net operating in..

Save an electronic : Directions: Be sure to save an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling, and grammar. Sources must be cite..

What will the annual savings be : Community Hospital has annual net patient revenues of $150 million. At the present time, payments received by the hospital are not deposited for six days on average. The hospital is exploring a lock-box arrangement will promises to cut the six days t..

Compute the sales level required in both dollars : Astro Co. sold 20,000 units of its only product and incurred a $50,000 loss (ignoring taxes) for the current year as shown here.

What is the future worth of your investment in actual dollar : General price inflation is estimated to be 3% for the next 5 years, 5% the 5 years after that, and 8% the following 5 years. If you invest $10,000 at 10% for those 15 years, what is the future worth of your investment in actual dollars at that time a..

Show that the expected time until the first occurrence : Show that the expected time until the first occurrence of a = (a1, ... , ak) is given by k Ii E [Y ], ni i=1 £=1 pa£. Find the expected inter-renewal interval; use Blackwell's theorem.

Determine estimated total annual inventory cost : Using the initial simulation results, determine the estimated total annual inventory cost using the cost parameters provided in the example. Break out between order cost, holding cost, and stockout cost.

User Account

All Pages