P15-15 Lockbox system Eagle Industries believes that a lockbox system can shorten its accounts receivable collection period by 3 days. Credit sales are $3,240,000 per year, billed on a continuous basis. The firm has other equally risky investments that earn a return of 15%. The cost of the lockbox system is $9,000 per year. (Note: Assume a 365-day year.)

b. What youtube examples of net benefit (cost) will the firm realize if it adopts the lockbox system?

Question

P15-15  Lockbox system Eagle Industries believes that a lockbox system can shorten its accounts receivable collection period by 3 days. Credit sales are $3,240,000 per year, billed on a continuous basis. The firm has other equally risky investments that earn a return of 15%. The cost of the lockbox system is $9,000 per year. (Note: Assume a 365-day year.)

b. What youtube examples of net benefit (cost) will the firm realize if it adopts the lockbox system?

supie · Answer

Ok so the credit sales are $$$3,240,000\ /\ year$$there is 365 days in a year and it says "investments that earn a return of 15%"

So what do we do first? What are your thoughts?