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QUESTION

Lawton expects to generate sales of P44,000,000 in the coming year.

Lawton expects to generate sales of P44,000,000 in the coming year. Lawton 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? Lawton uses a 360-day year in all calculations and can invest free funds at 6%

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