What dollar amount of savings would a project show if it reduced your outstanding Accounts Receivable by $0.9 million dollars to $3.5 million total and your organization's marginal cost of capital…

The correct answer is B. $51,300. See the full explanation below for the reasoning.

Define Phase

Question

What dollar amount of savings would a project show if it reduced your outstanding Accounts Receivable by $0.9 million dollars to $3.5 million total and your organization’s marginal cost of capital was 5.7%?

Options

A$49,250
B$51,300
C$117,500
D$202,424

How the community answered

(37 responses)

A
11% (4)
B
81% (30)
C
5% (2)
D
3% (1)

Topics

#financial analysis#accounts receivable#cost of capital#project savings

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