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ICBB · Question #53

ICBB Question #53: Real Exam Question with Answer & Explanation

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

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

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