Assuming That ABC Corporation Runs Two Different Departments to Handle

question 15

Multiple Choice

Assuming that ABC Corporation runs two different departments to handle cash outflows and cash inflows,what is the cost to the company of decentralised liquidity management if $100 000 is required to purchase plant and on the same day $175 000 will be received as payment from a customer,if the time period is one month,and the borrowing and lending rates are 15 per cent and 10 per cent,respectively?

• A)$1250.00
• B)$208.33
• C)$625.00
• D)$416.67

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