Premium Seed Sales,Inc.expects to generate sales of $22,000,000 in the coming year.All sales are done on a credit basis,net 45 days.Premium Seed has estimated that it takes an average of three days for payments to reach their central office and an additional two days to process the payments.What is the opportunity cost of the funds tied up in the mail and processing? Premium Seed uses a 360-day year in all calculations and can invest free funds at 6.5%.

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The Answer of Premium Seed Sales,Inc.expects to generate sales of $22,000,000 in the coming year.All sales are done on a credit basis,net 45 days.Premium Seed has estimated that it takes an average of three days for payments to reach their central office and an additional two days to process the payments.What is the opportunity cost of the funds tied up in the mail and processing? Premium Seed uses a 360-day year in all calculations and can invest free funds at 6.5%.