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Marta_Voda [28]
3 years ago
14

​(Cash management​) As CFO of Portobello Scuba Diving Inc. you are asked to look into the possibility of adopting a lockbox syst

em to expedite cash receipts from clients.
Portobello receives check remittances totaling ​$28 million in a year.
The firm records and processes 15 000 checks in the same period.
The National Bank of Brazil has informed you that it could provide the service of expediting checks and associated documents through the lockbox system for a unit cost of $ 0.20 per check.
After conducting an​ analysis, you project that the cash freed up by the adoption of the system can be invested in a portfolio of​ near-cash assets that will yield an annual​ before-tax return of 6 percent.
The company usually uses a​ 365-day year in its financial calculations.
a. What reduction in check collection time is necessary for Portobello to be neither better nor worse off for having adopted the lockbox​ system?
b. How would your solution to part ​(a​) be affected if Portobello could invest the​ freed-up balances at an expected annual return of only 3 ​percent?
c. What is the logical explanation for the differences in your answers to part ​(a​) and part ​(b​)?
Business
1 answer:
zheka24 [161]3 years ago
8 0

Answer:

Check the answers below

Explanation:

  • The per instrument cost of the bank is $0.25. Assuming uniform cheque value, the 24 million remittances across 10000 cheque will mean per cheque value of 2400. If this amount can be invested at 8% p.a., then daily investment income will be approx = 2400 * 8% /365 = $ 0.526

  • Now for the company to jus about cover the cost of the cheque processing, the time should reduce by (assuming fractional time in days is possible) 0.25/0.526 = 0.48 days

  • Now if the interest that can be earned reduces to 4%, the average daily interest will also reduce to $0.263. At this level, the time required to cover the cost should reduce by 0.95 days

The difference is simply because the opportunity cost in terms of alternate usage of funds has decreased for the company.

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actionow and becca enter into an oral contract in which becca agrees to work on a project for actionow’s living opportunities ce
JulsSmile [24]

Based on the fact that ActioNOW and Becca entered into an oral contract where Becca agrees to work on a project for ActioNOW for eighteen months, the enforcers of this contract are d. none of the choices.

<h3>Who can enforce this contract?</h3>

This transaction between Becca and ActioNOW was an oral contract which means that it falls under the Statute of Frauds. However, for an oral contract to be enforceable under this Statute, the goods or services exchanged have to be less then $500 in value.

The services or goods also have to be less than 1 year in duration. Because Becca and ActioNow agreed for a contract of 18 months which is more than a year, this contract is not enforceable under the Statute of Frauds and so the government cannot enforce this contract.

Options include:

  • a. ActioNOW.
  • b. Becca.
  • c. any third party, such as ActioNOW’s clients.
  • d. none of the choices

Find out more on the Statute of Frauds at brainly.com/question/14854791

#SPJ1

8 0
1 year ago
# 8 &amp; # 9 please .. I appreciate it
KatRina [158]
#8 is C. Unfortunately I do not know #9.
6 0
3 years ago
Benchmarking is the process of comparing other organizations’ activities against the practices used in one’s own organization to
mina [271]

Answer:

The correct answer is True.

Explanation:

Benchmarking is a continuous process by which the products, services or work processes of leading companies are taken as a reference, to compare them with those of your own company and then make improvements and implement them.

It is not about copying what your competition is doing, but learning what leaders are doing to implement it in your company by adding improvements. If we take as a reference those who stand out in the area that we want to improve and study their strategies, methods and techniques to subsequently improve and adapt them to our company, we will achieve a high level of competitiveness.

8 0
3 years ago
Stuart Concrete Company pours concrete slabs for single-family dwellings. Lancing Construction Company, which operates outside S
Karo-lina-s [1.5K]

Answer:

a) Contribution from the special order= $52,640.  

b) Stuart should accept the order

Explanation:

The amount of contribution to profit from the special order is the difference between the revenue  and the relevant cost of variable cost of the special order.

The relevant cost of the special order is equal the sum of all variable cost only.

Note that the allocated facility overhead is irrelevant to whether to accept or reject the order. This is so because the costs would still be incurred either way.

Relevant variable costs of special order = (880 + 510) × 47 = $65,330

Sales revenue = 2,510 × 47 =  $117,970.00

Contribution from the special order =$117,970.00 -  $65,330

                                                            = $52,640.00

B) Stuart should accept the special order because it would increase its profit by $52,640.  

5 0
3 years ago
One advantage of using a credit card is
alex41 [277]

Answer:

Convenience: You don’t have to worry about how much cash you have on hand. Just remember that you can always use a debit card instead. With a debit card you won’t be in danger of accumulating debt that will be subject to high interest charges if you don’t pay it off each month, like you would with a credit card. Remember to keep track of your checking account balance to be sure you can cover what you’re buying.

6 0
3 years ago
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