If a Company Can Implement Cash Management Systems and Save

question 17

Multiple Choice

If a company can implement cash management systems and save three days by reducing remittance time and one day by increasing disbursement time based on $2,000,000 in average daily remittances and $2,500,000 in average daily disbursements and its return on freed-up funds is 10%, what is the maximum that it should spend on the system?

• A) $2,000,000
• B) $650,000
• C) $850,000
• D) $1,000,000

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Definitions:

Implicit

Referring to memories or knowledge that influence thoughts and behaviors without being consciously acknowledged.

Short-Term Memory

The capacity for holding a small amount of information in mind in an active, readily available state for a short period of time.

Visual Sensory Store

Part of the memory system that holds visual information for a very short period, allowing for initial processing.

Semantic Memory

A type of long-term memory involving the capacity to recall words, concepts, or numbers, which is essential for the use and understanding of language.