Question
In: Finance
Halifax Industries has determined that through the establishment of local collection centres around the country, they...
Halifax Industries has determined that through the establishment of local collection centres around the country, they can speed up the collection of payments by one day. Furthermore, the cash management department of their bank has indicated to Halifax Industries that they can defer payments on their accounts by two days without offending suppliers. The bank has a remote disbursement centre in Saskatchewan. Financial details on Halifax Industries is provided below.
Annual collections, spread evenly throughout the 365-day year $ 520,000,000
Average daily disbursements $ 1,100,000
Earnings (per annum) on freed-up funds 6.5%
REQUIRED
a) How many dollars will the cash management system free up for Halifax Industries?
b) How much income can Halifax Industries generate through this plan?
c) How much can the new cash system cost and still have it be beneficial to implement?
Solutions
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jeff jeffy answered 2 years agoRelated Solutions
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xx
0
5
10
15
20
P(x)P(x)
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