The Barrell Company is approached by a bank that offers to implement a lockbox system of receipts for the firm.If the new system is implemented,it will reduce float by 6 days per year.If Barrell's cost of capital is 11.5% and its annual sales are expected to be $10,00,000,then what is the maximum amount that Barrell is willing to pay for the lockbox system?
A) $1,890.41
B) $18,904.11
C) $164,438.56
D) $1,150,000.00
Correct Answer:
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