The collection float.

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Answer 1

Question

Chapter 15, Problem 15.14P

a.

Summary Introduction

To determine: The collection float.

b.

Summary Introduction

To determine: Whether it be economically advisable for the firm to pay an annual fee of $16,500 to reduce collection float by 2 days.

c.

Summary Introduction

To determine: The Company’s opportunity cost have to be to make the $16,500 fee worthwhile.

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Answer 2

Question

Chapter 15, Problem 15.14P

a.

Summary Introduction

To determine: The collection float.

b.

Summary Introduction

To determine: Whether it be economically advisable for the firm to pay an annual fee of $16,500 to reduce collection float by 2 days.

c.

Summary Introduction

To determine: The Company’s opportunity cost have to be to make the $16,500 fee worthwhile.

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Answer 3

Question

Chapter 15, Problem 15.14P

a.

Summary Introduction

To determine: The collection float.

b.

Summary Introduction

To determine: Whether it be economically advisable for the firm to pay an annual fee of $16,500 to reduce collection float by 2 days.

c.

Summary Introduction

To determine: The Company’s opportunity cost have to be to make the $16,500 fee worthwhile.

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Answer 4

Question

Chapter 15, Problem 15.14P

a.

Summary Introduction

To determine: The collection float.

b.

Summary Introduction

To determine: Whether it be economically advisable for the firm to pay an annual fee of $16,500 to reduce collection float by 2 days.

c.

Summary Introduction

To determine: The Company’s opportunity cost have to be to make the $16,500 fee worthwhile.

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Answer 5

Chapter 15, Problem 15.14P

a.

Summary Introduction

To determine: The collection float.

b.

Summary Introduction

To determine: Whether it be economically advisable for the firm to pay an annual fee of $16,500 to reduce collection float by 2 days.

c.

Summary Introduction

To determine: The Company’s opportunity cost have to be to make the $16,500 fee worthwhile.

Answer 6

Chapter 15, Problem 15.14P

a.

Summary Introduction

To determine: The collection float.

Answer 7

Chapter 15, Problem 15.14P

a.

Summary Introduction

To determine: The collection float.

Answer 8

b.

Summary Introduction

To determine: Whether it be economically advisable for the firm to pay an annual fee of $16,500 to reduce collection float by 2 days.

Answer 9

b.

Summary Introduction

To determine: Whether it be economically advisable for the firm to pay an annual fee of $16,500 to reduce collection float by 2 days.

Answer 10

c.

Summary Introduction

To determine: The Company’s opportunity cost have to be to make the $16,500 fee worthwhile.

Answer 11

c.

Summary Introduction

To determine: The Company’s opportunity cost have to be to make the $16,500 fee worthwhile.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 15.1 - Why is working capital management one of the most...Ch. 15.1 - Prob. 15.2RQ Ch. 15.1 - Prob. 15.3RQ Ch. 15.2 - Prob. 15.4RQ Ch. 15.2 - Prob. 15.5RQ Ch. 15.2 - What are the benefits, costs, and risks of an...Ch. 15.2 - Prob. 15.7RQ Ch. 15.3 - Prob. 15.8RQ Ch. 15.3 - Briefly describe the following techniques for...Ch. 15.3 - Prob. 15.10RQ

The collection float.

Solution Summary: The author explains that the firm should not pay an annual fee of 16,500 to reduce collection float by 2 days because the savings (1,700) exceed the costs (16,500).

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To determine: The collection float.

To determine: Whether it be economically advisable for the firm to pay an annual fee of $16,500 to reduce collection float by 2 days.

To determine: The Company’s opportunity cost have to be to make the $16,500 fee worthwhile.

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Chapter 15 Solutions