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The Quick Corp

question 94

Essay

The Quick Corp.has implemented procedures to cut 1.5 days from their cash collection process.Annual sales (all charge sales) are $30 million and the opportunity cost of funds is 9 percent.What is the value of the annual savings, and how much would the savings be worth if the speed-up in collections can be considered permanent?


Definitions:

Daily Wage

The amount of money paid to an employee for a day's work.

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