Kelompok 88

Nama & NIM :

Muhammad Rizki Sakturia 13/348400/EK/19462
Joshua Upendra
13/348426/EK/19472
Belinda Sulaiman
13/351058/EK/19598
Yosua
13/349562/EK/19526
Willybrordus Krisna K. 13/348531/EK/19484
Andina Dwi Wahyuni
13/346443/EK/19302
Haikal Ahmadi
13/348468/EK/19476
Rahmat Iman Prabowo 13/352862/EK/19619
Addis Yudhistira
13/348406/EK/19468
Ibnu Syahid Sira Haq
13/352579/EK/19613

Question 17-9

Hardin-Gehr Corporation (HGC) began operations 5

years ago as a small firm serving customers in the
Detroit area. However, its reputation and market area
grew quickly. Today HGC has customers all over the
United States. Despite its broad customer base, HGC has
maintained its headquarters in Detroit; and it keeps its
central billing system there. On average, it takes 5 days
from the time customers mail in payments until HGC can
receive, process, and deposit them. HGC would like to
set up a lockbox collection system, which it estimates
would reduce the time lag from customer mailing to
deposit by 3 day-bringing it down to 2 days. HGC
receives an average of $1,400,000 in payments per day.

a. How much free cash would HGC generate if

it implemented the lockbox system? Would

this be one-time cash flow or a recurring
one, assuming the company ceases to
grow? How would growth affect your
answer?
b. If HGC has an opportunity cost of 10%, how
much is the lockbox system worth on an
annual basis?
c. What is the maximum monthly charge HGC
should pay for the lockbox system?

a. Hardin-Gehr Corperation has 5 days of

collection float, under the lockboxs system,

this would drop to 2 days.
$1,400,000 x 5 days = $7,000,000
$1,400,000 x 2 days = $2,800,000
$4,200,000
HGC can reduce its cahs balance by the
$4,200,000 reduction in negative float.

1,400,000 : 5 x 2 = 560.000 (reduce funds)

1,400,000 560,000 = 940,000 (cash infusion)
Would this be a one-time cash flow or a

recurring one?
= Recurring one, karena Firma tersebut akan
mendapatkan keuntungan yang berkelanjutan
How would growth affect your answer?

= Jadi bila ada pertumbuhan (di cabang lain)

maka reduce time dan cost transit tersebut
akan berubah tergantung lokasi dan jumlah,
namun cash flownya tetap berkelanjutan

b. The value of the lockbox system in an annual

basis :
0,10($4,200,000) = $420,000
c. Maximum monthly charge HGC can pay for
the lockbox system :
$420,000 : 12 = $35,000

Terimakasih