Posted By:
bruce Dorskind
Jeff
While there is a no reason to hold back $5m, the interest earned
on that money is relatively small in the scope of things
If Mastro earns 2% per annum on the money that's $100,000 per year
for 45 days they would earn less than $20,000- well less than a month's
salary for their most senior executives.
If the 45 day policy costs them a total 4 collections with a value of $500,000
the opportunity cost to them is at least $100,000
From a pure economic standout, at least from our vantage point, the 45
day hold policy does not make sense.
Bruce Dorskind
America's Toughest Want List