MLX has annual sales of $320 million per year and has calculated the collect float to be 12 days. If MLX is currently paying 9.35% on its line of credit, wh amount of interest expense could be saved if the collection float is reduced by 3 days? (Assume 365 days per year.)

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter13: Other Financing Alternatives
Section: Chapter Questions
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MLX has annual sales of $320 million per year and has calculated the collection
float to be 12 days. If MLX is currently paying 9.35% on its line of credit, what
amount of interest expense could be saved if the collection float is reduced by
3 days? (Assume 365 days per year.)
Transcribed Image Text:MLX has annual sales of $320 million per year and has calculated the collection float to be 12 days. If MLX is currently paying 9.35% on its line of credit, what amount of interest expense could be saved if the collection float is reduced by 3 days? (Assume 365 days per year.)
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