Top Posters
Since Sunday
4
4
2
k
1
j
1
J
1
s
1
1
a
1
1
m
1

Question

Agatha Concrete Company has been offered by its bank to manage its cash at a cost of $35,000 per year. Under the proposed cash management, the firm can reduce the cash required on hand by $180,000. Since the bank is also doing a lot of record keeping, the firm's administrative cost would decrease by $2,000 per month. What recommendation would you give the firm with respect to the proposed cash management assuming the firm's opportunity cost is 12 percent?

Answer

15 Seconds

Please Login or Register to use this feature.
Add Comment
Explore
Post your homework questions and get free online help from our incredible volunteers
  151 People Browsing
 1019 Signed Up Today
Your Opinion
Where do you get your textbooks?
Votes: 183

Previous poll results: Do you believe in global warming?