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

question 60

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 value of funds released?

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

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Definitions:

Obtained Value

The genuine result or value obtained by conducting a statistical test or experiment.

P Value

A statistical measure that helps scientists determine the significance of their research results, indicating the probability of obtaining an effect at least as extreme as the one in your sample data if the null hypothesis were true.

T Value

In hypothesis testing, it is the calculated value used to compare against a critical value to decide whether to reject the null hypothesis.

Variance

A numerical indicator that shows the distribution or variability of a dataset around its average value.