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

question 30

Multiple Choice

Roxy is evaluating a lock-box system that will reduce float by 6 days.The firm has annual sales of $180 million and an opportunity cost of 12%.If the lock-box system is adopted,what is the amount of funds released?

• A) $ 355,068.49
• B) $ 493,150.68
• C) $ 59,178.08
• D) $ 2,958,904.11

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The shortfall when the federal government's expenditures exceed its revenues within a fiscal year.

Federal Budget Deficit

The financial situation where the federal government's expenditures exceed its revenues in a given fiscal year.

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The total amount of money that a country's government has borrowed by various means.

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Government policies concerning taxation and spending that are aimed at influencing economic conditions, including promoting economic growth, controlling inflation, and reducing unemployment.