Cost-benefit analysis of cash management Nicholas Birdcage Company of Hollywood ships cages throughout the country. Nicholas has determined that through the establishment of local collection centers around the country, he can speed up the collection of payments by one and one-half days. Furthermore, the cash management department of his bank has indicated to him that he can defer his payments on his accounts by one-half day without affecting suppliers. The bank has a remote disbursement center in Florida. a. If the company has $4 million per day in collections and $2 million per day in disbursements, how many dollars will the cash management system free up? b. If the company can earn 9 percent per annum on freed-up funds, how much will the income be? c. If the total cost of the new system is $700,000, should it be implemented?

Cost-benefit analysis of cash management Nicholas Birdcage Company of Hollywood ships cages throughout the country. Nicholas has determined that through the establishment of local collection centers around the country, he can speed up the collection of payments by one and one-half days. Furthermore, the cash management department of his bank has indicated to him that he can defer his payments on his accounts by one-half day without affecting suppliers. The bank has a remote disbursement center in Florida. a. If the company has $4 million per day in collections and $2 million per day in disbursements, how many dollars will the cash management system free up? b. If the company can earn 9 percent per annum on freed-up funds, how much will the income be? c. If the total cost of the new system is $700,000, should it be implemented?

Cost-benefit analysis of cash management Nicholas Birdcage Company of Hollywood ships cages throughout the country. Nicholas has determined that through the establishment of local collection centers around the country, he can speed up the collection of payments by one and one-half days. Furthermore, the cash management department of his bank has indicated to him that he can defer his payments on his accounts by one-half day without affecting suppliers. The bank has a remote disbursement center in Florida. a. If the company has $4 million per day in collections and $2 million per day in disbursements, how many dollars will the cash management system free up? b. If the company can earn 9 percent per annum on freed-up funds, how much will the income be? c. If the total cost of the new system is $700,000, should it be implemented?

Hi, magnolia2010!

Are you looking for a direct answer to your questions, or for someone to come along who will be able to teach you how to come up with the correct answers yourself, please?

If the former is true, then please click on the following link.

https://www.askmehelpdesk.com/finance-accounting/announcement-font-color-ff0000-u-b-read-first-expectations-homework-help-board-b-u-font.html

Thanks!

Please do not keep posting the same question over and over. It just tends to confuse us and slows things down. I have merged them into the same thread so we don't have the same post everywhere.

Also please see the guidelines for posting homework questions:
https://www.askmehelpdesk.com/finance-accounting/announcement-font-color-ff0000-u-b-read-first-expectations-homework-help-board-b-u-font.html

I need someone to show me how to do the problem please! I am confused on how to organize the numbers! Can anyone help give me some insight on the formulas so I can do my own similar problem?