6. If a company can implement cash management systems and save 3 days by reducing remittance time and 2 days by increasing disbursement time based on P3,000,000 in average remittances and P2,500,000 in average disbursements and their return on freed up funds is 12%, what is the max they should spend on the system? A. P2,000,000 B. P1,650,000 ???? C. P1,250,000 D. P1,000,000

6. If a company can implement cash management systems and save 3 days by reducing remittance time and 2 days by increasing disbursement time based on P3,000,000 in average remittances and P2,500,000 in average disbursements and their return on freed up funds is 12%, what is the max they should spend on the system? A. P2,000,000 B. P1,650,000 ???? C. P1,250,000 D. P1,000,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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6. If a company can implement cash management systems and save 3 days by reducing remittance time and 2
days by increasing disbursement time based on P3,000,000 in average remittances and P2,500,000 in average
disbursements and their return on freed up funds is 12%, what is the max they should spend on the system?
A. P2,000,000
B. P1,650,000 ????
C. P1,250,000
D. P1,000,000

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