What dollar amount of savings would a project show if it reduced your outstanding Accounts Receivable by $1.4 million dollars to $5.3 million total and your organization's marginal cost of capital…

The correct answer is B. $86,800. See the full explanation below for the reasoning.

Organizational Process Management and Measures

Question

What dollar amount of savings would a project show if it reduced your outstanding Accounts Receivable by $1.4 million dollars to $5.3 million total and your organization’s marginal cost of capital was 6.2%?

Options

A$43,400
B$86,800
C$117,500
D$328,600

How the community answered

(59 responses)

A
3% (2)
B
71% (42)
C
8% (5)
D
17% (10)

Topics

#financial benefits#accounts receivable#cost of capital#project financials

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