Ivanhoe Traders has annual sales of $1,600,000. The firm's financial manager has determined that using a lockbox will reduce collection time by 2.1 days. If the firm's opportunity cost on savings is 4.90 percent, what are the savings from using the lockbox? (Do not round itermediate calculations. Use 365 days for calculation. Round answer to 2 decimal places, e.g. 12.25.) what is the Savings from using the lockbox?

Ivanhoe Traders has annual sales of $1,600,000. The firm's financial manager has determined that using a lockbox will reduce collection time by 2.1 days. If the firm's opportunity cost on savings is 4.90 percent, what are the savings from using the lockbox? (Do not round itermediate calculations. Use 365 days for calculation. Round answer to 2 decimal places, e.g. 12.25.) what is the Savings from using the lockbox?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 1P

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