If a Company Can Implement Cash Management Systems and Save

question 17

Multiple Choice

If a company can implement cash management systems and save three days by reducing remittance time and one day by increasing disbursement time based on $2,000,000 in average daily remittances and $2,500,000 in average daily disbursements and its return on freed-up funds is 10%, what is the maximum that it should spend on the system?

• A) $2,000,000
• B) $650,000
• C) $850,000
• D) $1,000,000

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Definitions:

Cardiac Muscle

A type of striated muscle found exclusively in the heart, responsible for pumping blood throughout the body.

Intercalated Discs

Specialized structures in cardiac muscle cells that facilitate the synchronized contraction of the heart through electrical coupling between cells.

Fibers

Fibers are long, thin strands of material, often found in textiles or dietary content, known for their strength, flexibility, or nutritional value.

Pyruvic Acid

A colorless liquid with a fruity smell, considered as a key intersection in several metabolic pathways within the cell.