Realize savings in the form of accelerated working capital and increased productivity.
This is your sum total of working capital and productivity savings.
18 days is calculated as 30% of your DSO, which is 60 days.
This is the amount of revenues that you will collect in 18 days, given that you have to collect $30,000,000 in 365 days.
Calculated as (Revenues that need to be collected) multiplied by (18 days / 365 days)
This is the interest realised on your working capital savings of $1,479,452 calculated as 7% of the amount.
Calculated as 40% of your total cost of resources, which is $60,000 multiplied by 3 resources in this case.