Howton Mining Expects to Have Credit Sales of $8,000,000 This

question 178

Essay

Howton Mining expects to have credit sales of $8,000,000 this year.First National Bank is offering Howton Mining a lock-box system for $1,200 per month.Howton Mining estimates that the new lock-box system will reduce float by 4.5 days.What rate of return must Howton Mining earn on its marketable securities to make it worthwhile for the company to institute this lock-box system? Use a 365-day year.

---

Definitions:

Environment

The sum of all external conditions and influences that affect the life and development of an organism or population.

Behaviour

Behaviour refers to the actions or reactions of an organism or system, usually in response to external stimuli, encompassing a wide range of activities.

Hemispheric

Pertaining to one half of the brain, often regarding the specialized functions of the brain's left or right hemisphere.

Personal Application

The process of applying concepts, ideas, or skills to one's own life or personal situation to achieve specific personal goals or improvements.