The Quick Corp. has implemented procedures to cut 1.5 days from its cash collection process. Annual credit sales are $30 million and the opportunity cost of funds is 9%. What is the value of the annual savings, and how much would the savings be worth if the speed-up in collections can be considered permanent?

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The Answer of The Quick Corp. has implemented procedures to cut 1.5 days from its cash collection process. Annual credit sales are $30 million and the opportunity cost of funds is 9%. What is the value of the annual savings, and how much would the savings be worth if the speed-up in collections can be considered permanent?