How Much Value Would Be Added to a Firm That $\div$

question 103

Multiple Choice

How much value would be added to a firm that could permanently reduce its collection period by two days if daily collections average $10,000 and the opportunity cost is 5 percent annually?

• A)$1,000
• B)$1,200
• C)$10,000
• D)$20,000
• daily interest = $10,000 x 2 x .05 \(\div\) 365
• = $2.7397
• Present value of daily interest =

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Definitions:

Acquiring

The process of obtaining or gaining possession of something.

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The process of acquiring new, or modifying existing, knowledge, behaviors, skills, values, or preferences.

Experience

The knowledge or skill acquired by a person through direct participation in events or activities over a period of time.

Cognitive Learning

A type of learning that involves mental processes like thinking, knowing, and problem-solving.