Problemif a company can implement cash management systems, Ask an Expert

Finance

Problem:

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 their return on freed-up funds is 10%,

Required:

Question: What is the maximum that they should spend on the system?

$2,000,000

$650,000

$850,000

$1,000,000

Note: Please describe comprehensively and provide step by step solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91147796

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