Pacific Industries has daily sales of $225,000. The company is considering implementing a lockbox system that would reduce collection time by 1.8 days. If the company can earn 6% interest per year, what would be the annual savings from implementing the lockbox system?"

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter13: Other Financing Alternatives
Section: Chapter Questions
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Pacific Industries has daily sales of $225,000. The company
is considering implementing a lockbox system that would
reduce collection time by 1.8 days. If the company can earn
6% interest per year, what would be the annual savings
from implementing the lockbox system?"
Transcribed Image Text:Pacific Industries has daily sales of $225,000. The company is considering implementing a lockbox system that would reduce collection time by 1.8 days. If the company can earn 6% interest per year, what would be the annual savings from implementing the lockbox system?"
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