The Barrell Company is approached by a bank that offers to implement a lockbox system of receipts for the firm. If the new system is implemented, it will reduce float by 6 days per year. If Barrell's cost of capital is 11.5% and its annual sales are expected to be P10,00,000, then what is the maximum amount that Barrell is willing to pay for the lockbox system? O P164,438.56 O P18,904.11 O P1,150,000.00 P1,890.41
The Barrell Company is approached by a bank that offers to implement a lockbox system of receipts for the firm. If the new system is implemented, it will reduce float by 6 days per year. If Barrell's cost of capital is 11.5% and its annual sales are expected to be P10,00,000, then what is the maximum amount that Barrell is willing to pay for the lockbox system? O P164,438.56 O P18,904.11 O P1,150,000.00 P1,890.41
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter21: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 10P: The D.J. Masson Corporation needs to raise $500,000 for 1 year to supply working capital to a new...
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![The Barrell Company is approached by a bank that offers to
implement a lockbox system of receipts for the firm. If the new
system is implemented, it will reduce float by 6 days per year. If
Barrell's cost of capital is 11.5% and its annual sales are expected
to be P10,00,000, then what is the maximum amount that Barrell
is willing to pay for the lockbox system?
O P164,438.56
O P18,904.11
O P1,150,000.00
O P1,890.41](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0a7ce9f1-544d-4f69-a7ed-d22f34eb4323%2F7123d77e-7dc7-4036-9840-ae78e04cbd34%2Fa64s1ta_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The Barrell Company is approached by a bank that offers to
implement a lockbox system of receipts for the firm. If the new
system is implemented, it will reduce float by 6 days per year. If
Barrell's cost of capital is 11.5% and its annual sales are expected
to be P10,00,000, then what is the maximum amount that Barrell
is willing to pay for the lockbox system?
O P164,438.56
O P18,904.11
O P1,150,000.00
O P1,890.41
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