What Is the Benefit for a Firm with Daily Sales

question 98

Multiple Choice

What is the benefit for a firm with daily sales of $30,000 to be able to speed up collections by 3 days,assuming an 8% 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:

Confirm Appointments

The process of officially validating or approving scheduled meetings, typically ensuring mutual agreement on the timing and agenda.

State Action

Activities or conduct carried out by government or its officials in the execution of laws and government policies.

Federal Government

The national government of a federal country, which holds the authority to govern matters that affect the entire nation, distinct from state or local governments.

Private Activity

Activities undertaken by individuals or private entities without direct government involvement or subsidy.