IASSC Certified Lean Six Sigma Black Belt (ICBB) — Question 80

What dollar amount of savings would a project show if it reduced your outstanding Accounts Receivable by $0.9 million dollars to $3.5 million total and your organizations marginal cost of capital was 5.7%?

Answer options

• A. $49,250
• B. $51,300
• C. $117,500
• D. $202,424

Correct answer: B

Explanation

The correct answer is B, which represents the savings calculated from the reduction in Accounts Receivable using the marginal cost of capital. The other options are incorrect as they do not accurately reflect the computation based on the provided financial figures.