As a result of the system the float time will be reduced

Assignment Help Finance Basics
Reference no: EM13574352

Lockbox. Doral Corporation is considering a lockbox arrangement that will cost $216,000 per year. Average daily collections are $450,000. As a result of the system, the float time will be reduced by 3 days. The rate of return is 14 percent. Should the lockbox arrangement be instituted?

Reference no: EM13574352

Questions Cloud

Sales for petro equipment are expected to be 5800 units for : sales for petro equipment are expected to be 5800 units for the coming month. the company keeps a 25 of unit sales for
Marcel co is growing quickly dividends are expected to grow : marcel co. is growing quickly. dividends are expected to grow at a 30 percent rate for the next three years with a
Km ries tere bax and josh thomas invested 30000 46000 and : kim ries tere bax and josh thomas invested 30000 46000 and 54000 respectively in a partnership. during its first
What should be the balance in kents deferred tax liability : 1. panther co. had a warranty liability of 345000 at the beginning of 2013 and 309000 at the end of 2013. warranty
As a result of the system the float time will be reduced : lockbox. doral corporation is considering a lockbox arrangement that will cost 216000 per year. average daily
Accounts are paid on average 60 days after sale sales per : average investment in accounts receivable. the cost of product x is 30 percent of its selling price and the carrying
Eloise is a sales representative for a video production : eloise is a sales representative for a video production company. while at an exposition she incurs 2000 in
Timber rights on a tract of land were purchased for 800000 : data related to the acquisition of timber rights and intangible assets during the current year ended december 31 are as
Explain why sunk costs should not be included in a capital : explain why sunk costs should not be included in a capital budgeting analysis but opportunity cots and externalities

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the implied risk premium

A project requires an initial investment outlay of $3,335 and produces cash inflows of $925 for each of five years. If it has a zero NPV and the risk-free rate is 6%, what is the implied risk premium?

  Internal and external pay equity

Explain the importance of managing pay equity (both internal and external) and the consequences for not doing so.

  What will you pay for a share today

Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $9, but management expects to reduce the payout by 4 percent per year, indefinitely. If you require an 11 percent return on this stock, what will you pay for a share..

  What is bad debt expense for 2013

Determine the amount of accounts receivable written off during 2013.

  What is the rate of return to an investor in the fund

Corporate Fund started the year with a net asset value of $12.50. By year-end, its NAV equaled $12.10. The fund paid year-end distributions of income and capital gains of $1.50. What is the rate of return to an investor in the fund?

  Explain what is the lowest fc

Explain what is the lowest FC at which firm 1 does not have to engage in strategic entry deterrence in order to keep firm 2 out of the market?

  What are the responsibilities of industrialized nations

What are the responsibilities of industrialized nations to developing nations in this regard? Why? What are the responsibilities of businesses in industrialized nations to businesses in developing nations?

  How much is his promise worth right now

Your uncle promises to give you $550 per quarter for the next five years starting today. How much is his promise worth right now if the interest rate is 8% compounded quarterly.

  Cash flow from operations in a business is different than

cash flow from operations in a business is different than net income from operations in the same business. discuss the

  The company just announced that future dividends will be

solar energy inc. will pay an annual dividend of 1.85 next year. the company just announced that future dividends will

  Financial research report

Financial Research Report

  Show the marginal cost of capital schedule

Explain how many break points are thre in the marginal cost of capital schedule

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