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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Definitions:

Win-win Orientation

A negotiation and conflict resolution approach where all parties aim for a solution that benefits everyone involved.

Cooperative Social Value

The preference for outcomes that maximize benefits for all group members through cooperation and mutual support.

Win-lose Orientation

A competitive approach to conflict resolution where one party seeks to win at the expense of the other, often leading to negative outcomes for relationships.

Mixed-motive

Games or situations where participants' interests partially converge and partially diverge, leading to complex decision-making dynamics.