What Is the Benefit for a Firm with Daily Sales

question 4

Multiple Choice

What is the benefit for a firm with daily sales of $30,000 to be able to speed up collections by three days, assuming an 8 percent annual opportunity cost of funds?

• A)$7,200 daily benefit
• B)$7,200 annual benefit
• C)$30,000 annual benefit
• D)$90,000 annual benefit

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Definitions:

Adrenocorticotropic Hormone

A hormone produced by the anterior pituitary gland that stimulates the adrenal cortex to release corticosteroid hormones.

Cortisol

Steroid hormone released by the zona fasciculata of the adrenal cortex; increases blood glucose and inhibits inflammation.

Positive Feedback

A process in which the end products of an action cause more of that action to occur in a feedback loop.

Hypocalcemia

A medical condition characterized by abnormally low calcium levels in the blood, which can cause neurological issues.