Business, 29.11.2019 03:31 manuellopez1981

Fisher-gardner corporation (fgc) began operations 5 years ago as a small firm serving customers in the chicago area. however, its reputation and market area grew quickly. today fgc has customers all over the united states. despite its broad customer base, fgc has maintained its headquarters in detroit, and it keeps its central billing system there. on average, it takes 7 days from the time customers mail in payments until fgc can receive, process, and deposit them. fgc would like to set up a lockbox collection system, which it estimates would reduce the time lag from customer mailing to deposit by 3 days-bringing it down to 4 days. fgc receives an average of $2,500,000 in payments per day.
1. how much free cash would fgc generate if it implemented the lockbox system? round your answer to the nearest dollar. would this be a one-time cash flow or a recurring one, assuming the company ceases to grow?
2. how would growth affect your answer? if the firm grows, cash flow. if fgc has an opportunity cost of 7%, how much is the lockbox system worth on an annual basis? round your answer to the nearest dollar.
3. what is the maximum monthly charge fgc should pay for the lockbox system? round your answer to the nearest cent. $

Answers: 2

Show answers

Other questions on the subject: Business

Business, 21.06.2019 14:30, hunterbetterton1

Abc computer company has a $20 million factory in silicon valley in which in builds computer components. during the current year, abc's costs are labor (wages) of $1.01.0 million; interest on debt of $0.20.2 million; and taxes of $0.20.2 million. abc sells all its output to xyz supercomputer for $2.62.6 million. using abc's components, xyz builds four supercomputers at a cost of $0.8500.850 million each, which comes from $0.6500.650 million worth of components, $0.10.1 million in labor costs, and $0.10.1 million in taxes per computer. xyz has a $30 million factory. xyz sells three of the supercomputers to other businesses for $1.81.8 million each. at year's end, it had not sold the fourth. the unsold computer is carried on xyz's books as a $0.8500.850 million increase in inventory.

Answers: 1

continue

Business, 22.06.2019 11:10, AM28

Your team has identified the risks on the project and determined their risk score. the team is in the midst of determining what strategies to put in place should the risks occur. after some discussion, the team members have determined that the risk of losing their network administrator is a risk they'll just deal with if and when it occurs. although they think it's a possibility and the impact would be significant, they've decided to simply deal with it after the fact. which of the following is true regarding this question? a. this is a positive response strategy. b. this is a negative response strategy. c. this is a response strategy for either positive or negative risk known as contingency planning. d. this is a response strategy for either positive or negative risks known as passive acceptance.

Answers: 2

continue

Business, 22.06.2019 15:40, arigamez90

Aprice control is: question 1 options: a)a tax on the sale of a good that controls the market price. b)an upper limit on the quantity of some good that can be bought or sold. c)a legal restriction on how high or low a price in a market may go. d)control of the price of a good by the firm that produces it.

Answers: 1

continue

Business, 23.06.2019 05:30, 24nelsoaddh

What are some examples of types of investments on the part of manufactures that result in growth? how does this improve a nation's standard of living?

Answers: 3

continue

You know the right answer?

Fisher-gardner corporation (fgc) began operations 5 years ago as a small firm serving customers in t...