Pronet has annual sales of $724 million from its 600 retail stores.Pronet can reduce its mail float by 2 days through the use of wire transfers.The annual cost of the wire transfers is expected to be $105,610.If Pronet's cost of short-term funds is 9.75 percent, should the change to wire transfers be made? Assume 365 days per year.
A) No, loss of $247,340
B) Yes, savings of $281,185
C) Yes, savings of $474,582
D) No, loss of $105,610
Correct Answer:
Verified
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