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

question 9

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 amount of funds released?

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

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Definitions:

Business Clothes

Clothing that is appropriate for a professional workplace environment, often including suits, dress shirts, blazers, and formal shoes.

Product Approach

An approach in which the salesperson places the product on the counter or hands it to the customer, saying nothing.

Demonstrations

Live or virtual showcases of a product's features and benefits, designed to educate potential customers and encourage them to make a purchase.