Answer:
$840,000
Step-by-step explanation:
Calculation of how much should the firm be willing to pay for a cash management system
Using this formula
Annual return from cash management system = Average daily remittances × 2 days disbursement schedule× Percentage of excess funds
Let plug in the formula
Annual return from cash management system$6,000,000 × 2 days × 7%
Annual return from cash management system= $840,000
Therefore the firm be willing to pay the amount of $840,000 for thebcash management system if the firm earns 7% on excess funds.