How much is the net advantage or (disadvantage) if ABC accepts the bank's offer?
Chapter1: Financial Statements And Business Decisions
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ABC Corporation was approached by bank. The latter promised that it can speed up the check clearing process to 2 days for a monthly fee of P500. ABC currently deposits 30 check daily with an average value of P2,000. The current clearing process takes 6 days. ABC can earn 6% on money marketable securities.
How much is the net advantage or (disadvantage) if ABC accepts the bank's offer?
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