Top Notch Tools Has Average Daily Receipts of $3,600

question 21

Multiple Choice

Top Notch Tools has average daily receipts of $3,600.These receipts are available after 1.5 days on average.What is the NPV of eliminating the float if the cost to do so is $1,500?

• A)$3,260
• B)$3,900
• C)$2,100
• D)$5,400
• E)$3,150

Recognize the importance of systematically evaluating alternatives to minimize biases and satisficing behavior.

Learn about the role of heuristic biases in decision-making and strategies to overcome them.

Understand how emotions and intuition influence decision making.

Define satisficing and its role in decision making.

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business, whichever is longer.

Accounts Receivable

Money owed a company by its clients or customers who have promised to pay for the products at a later date.

Commercial Paper

A written promise from one company to another to pay a specific amount of money.