Other Homework Help

Aqua System Inc., expects to have $5,777,484 in credit sales during the coming year. Currently all checks are sent to the home office. A proposed lockbox system can eliminate 1 days of float, releasing funds which, when invested, will earn 12.64 percent per year. What annual savings can Aqua System expect if the system is implemented? Use a 365-a day year. Round the answer to two decimal places.