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Marcos Company Annual Sales Are $730 Million

Question 58

Multiple Choice

Marcos Company annual sales are $730 million.Suppose Marcos is able to reduce the time required to process customer payments by 3 days through more efficient payment processing techniques.Given that any funds released by these methods can be invested elsewhere in the company to yield a 15% pretax rate of return, determine the annual increase in pretax returns.(Assume 365 days per year in all calculations.)


A) $900,000
B) $300,000
C) $6,000,000
D) cannot be determined from the information provided

Correct Answer:

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