Explore BrainMass

Explore BrainMass

    Annual Increase in Income Realized

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Your firm has $45.0 million invested in accounts receivable, which is 90 days of net revenues. If this value could be reduced to 50 days, what annual increase in income would your firm realize if the increase in cash could be invested at 7.5 percent?

    A. $20.0 million

    B. $1.5 million

    C. $1.875 million

    D. None of the above

    © BrainMass Inc. brainmass.com June 4, 2020, 3:40 am ad1c9bdddf