Your Firm Is Expected to Have $15,000,000 in Sales Next

question 61

Multiple Choice

Your firm is expected to have $15,000,000 in sales next year and its cost of capital is 13.5%.How many days of float will a lockbox system have to save you in order to pay for a system that will cost your firm $27,740 per year?

• A) 2 days
• B) 3 days
• C) 4 days
• D) 5 days

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Definitions:

Cognitive Mediational

Relating to the theory that cognitive processes mediate the relationship between stimuli and emotional responses.

Schachter and Singer

Psychologists who proposed the two-factor theory of emotion, suggesting that emotion comes from a combination of physiological arousal and cognitive labeling of that arousal.

Nucleus Accumbens

A brain structure that plays a central role in the reward circuit, associated with pleasure, reinforcement learning, and addiction.

Limbic System

A complex system of nerves and networks in the brain, involved in basic emotions such as fear and pleasure, and drives like those for food and sex.