A firms average accounts receivable ar is 20 million and is


A firm's average accounts receivable (A/R) is $2.0 million and is financed by a bank loan with 12% annual interest. It is considering a regional lockbox system to speed up collections that it believes will reduce A/R by 20 percent. The annual cost of the system is $12,000. What is the estimated net annual savings to the firm from implementing the lockbox system?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: A firms average accounts receivable ar is 20 million and is
Reference No:- TGS01231121

Expected delivery within 24 Hours