really good case solving process. I disagree with the ROI calculation at the end though because they compare apples with pears i.e. profits with cash collection. The correct solution would be to compare the 330k costs of outsourcing to the costs of capital saved. I assume the outsourcing provider is factoring provider. Then, for example, for the first category 90% =8,1M of the 9M in the 91- 120 days collection day category is collected on the 91st day instead equally over the following 30 days, saving us on average 15 days of collection time. The saved cost of capital can be calculated by: 15days/365 days x 8,1 M x WACC p.a.. Also I assume no other negative or positive effects on profits such as that the collection percentage is equal for inhouse and outsourcing and that no head count is replaced = no cost savings here. Please let me know if I am thinking into the wrong direction here and if yes: why. thank you.
