What is the savings from using the lockbox are in dollor

Assignment Help Finance Basics
Reference no: EM131144930

Pacific Traders has annual sales of $1,724,684. The firm's financial manager has determined that using a lockbox will reduce collection time by 3.9 days. If the firm's opportunity cost on savings is 4.9 percent, the savings from using the lockbox are $____ per year?

Reference no: EM131144930

Questions Cloud

What amount was reported on the statement of cash flows : In addition, Perkins Company's income statement reported a loss on the sale of equipment of $4,500. What amount was reported on the statement of cash flows as "cash flow from sale of equipment"?
Calculate the bottleneck rate-the raw process time : Consider a CONWIP flow line with 3 stations in series (1à2à3); each station consists of a set of identical machines. The throughput capability (production rates) of stations 1, 2, and 3, are 3, 2, and 4 units per hour, respectively, and the correspon..
Vessel for minimizing the transportation cost : If it costs $1 for each round trip of the vessel, find the dimensions of the vessel for minimizing the transportation cost. Assume that the vessel has no salvage upon completion of the operation.
What are some factors that influence personal attraction : What are some factors that influence personal attraction? For this discussion please address the importance and the process of interpersonal attraction. Discuss the following as it relates to interpersonal attraction.
What is the savings from using the lockbox are in dollor : Pacific Traders has annual sales of $1,724,684. The firm's financial manager has determined that using a lockbox will reduce collection time by 3.9 days. If the firm's opportunity cost on savings is 4.9 percent, the savings from using the lockbox are..
Explain the quantitative and qualitative tools you used : Identify your problem statement and complete a root-cause analysis. Identify which quality tools you used to identify and vet the problem. Explain the quantitative and qualitative tools you used and provide a summary of how you arrived at your prob..
What are the velocity and thermal boundary layers : What are the forms of Newton's law of cooling for a heat flux and a heat rate? What are the velocity and thermal boundary layers? Under what conditions do they develop? What quantities change with location in a velocity boundary layer? A thermal boun..
Define college stakeholders : Who are the stakeholders in a community college How broadly inclusive would you define college stakeholders? Give examples of how the school's stakeholders affect us and what effect the school has on themList them.
The comparative balance sheets for howell company : The comparative balance sheets for Howell Company show these changes in noncash current asset accounts: accounts receivable decrease $80,000, prepaid expenses increase $28,000, and inventories increase $40,000.

Reviews

Write a Review

Finance Basics Questions & Answers

  Would this expansion create value for brook enterprises

Would this expansion create value for Brook Enterprises? Perform a NPV (net present value) analysis.

  Juicers inc produces multiple fruit juices for the

juicers inc produces multiple fruit juices for the caribbean market. you have been given responsibility forall planning

  Recent surveys of corporate exchange risk management

recent surveys of corporate exchange risk management practices indicate that many u.s. firms simply do not hedge. how

  Difference between leverage and coverage

PAF 9140 BUDGETING - What is the Mission Statement and why is it important and why do you need to present the budget and the cashflow projection?

  What must the beta be for the other stock

You own a portfolio equally invested in a riskfree asset and two stocks. If one of the stocks has a beta of 1 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio?

  Historically high return stocks

Historically high return stocks have exhibited lower risk than low return stocks - while the smart money knows this and is able to effectively arbitrage excess returns from low risk stocks? To what extent does this make sense? Discuss and elaborate..

  Find the present value

Find the present value of $3,600 under each of the following rates and periods. (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny.)

  What is the risk premium on a stock with a beta

The Elvis Alive Corporation, makers of Elvis memorabilia, has a beta of 2.35. The return on the market portfolio is 13%, and the risk-free rate is 7%. According to CAPM, what is the risk premium on a stock with a beta of 1.0?

  What is its cost of equity in this case

Current the risk-free rate is about 4.5%, and the return on the S&P 500 (the market proxy) is 12.7%. The firm's beta is currently estimated to be 1.65.

  Currency exchange risk management using swaps

Activity: Currency Exchange Risk Management Using Swaps Bob is asking for an explanation. He has left you a note on your desk. BOB'S NOTE: I'm still not entirely comfortable with the debt issuance and hedging using the futures. I'm also concerned bec..

  Calculate for each year the loan balance that remains

a mortgage requires you to pay 70000 at the end of each of the next eight years. the interest rate is 8.a. what is the

  Based on the ratios calculated discuss briefly the

condensed balance sheet and income statement data for fellenz corporation are presented below.fellenz corporation

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