What are the potential savings from the lockbox

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Reference no: EM131938640

1. Rosemary Corp. has daily sales of $139,000. The financial manager at the firm has determined that a lockbox would reduce collection time by 2.2 days. Assuming the company can earn 5.5 percent interest per year, what are the potential savings from the lockbox? Savings from the lockbox $

2. The expected spot rate is F/$.5. If the present spot rate is F/$.48 and the interest rate in the franc is .03, what should we do to maximize return?

Reference no: EM131938640

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