Emma Is Evaluating a Lock-Box System That Will Reduce Float

question 21

Multiple Choice

Emma is evaluating a lock-box system that will reduce float by 4 days.The firm has annual sales of $52 million and an opportunity cost of 15%.If the lock-box system is adopted,what is the value of funds released?

• A) $ 85,479.45
• B) $ 142,465.75
• C) $ 21,369.86
• D) $ 569,863.01

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