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:

Physiological Component

Refers to the physical and biological aspects that contribute to an organism's functions and processes.

Behavioural Component

The aspect of attitudes which pertains to the way we act or behave towards an object or situation.

Autonomic Arousal

The activation of the autonomic nervous system, which can result in physiological reactions such as increased heart rate or sweating, often due to stress or excitement.

Physiological Component

Refers to the aspects of processes, functions, and activities of living organisms that can be measured and studied.