If a Company Can Implement Cash Management Systems and Save

Multiple Choice

If a company can implement cash management systems and save three days by reducing remittance time and one day by increasing disbursement time based on $2,000,000 in average daily remittances and $2,500,000 in average daily disbursements and its return on freed-up funds is 10%, what is the maximum that it should spend on the system?

A) $2,000,000
B) $650,000
C) $850,000
D) $1,000,000