Tokyo Corporation plans to establish a lockbox arrangement that would reduce its collection float by five (5) days. TC normally receives an average of $160,000 in payments each day. If its opportunity cost is 12 percent, how much should TC be willing to pay each month for the lockbox arrangement? No decimal point, no dollar sign. Use comma. (_____)
Tokyo Corporation plans to establish a lockbox arrangement that would reduce its collection float by five (5) days. TC normally receives an average of $160,000 in payments each day. If its opportunity cost is 12 percent, how much should TC be willing to pay each month for the lockbox arrangement? No decimal point, no dollar sign. Use comma. (_____)
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter27: Investment, The Capital Market, And The Wealth Of Nations
Section: Chapter Questions
Problem 13CQ
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Tokyo Corporation plans to establish a lockbox arrangement that would reduce its collection float by five (5) days. TC normally receives an average of $160,000 in payments each day. If its
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