You are considering implementing a lockbox system for your firm. The system is expected to reduce the collection time by 2 days. On an average day, your firm receives 460 cheques with an average value of $350 each. The daily interest rate on Treasury bills is.01 %. The bank charge per cheque would be $.20. What is the anticipated daily cost of the lockbox system?
A) $16.10
B) $92.00
C) $108.10
D) $123.60
E) $161.00
Correct Answer:
Verified
Q78: Transaction motive is a reason for a
Q79: Speculative motive is a reason for a
Q80: Cyclical activities are a primary reason why
Q81: BullsNBears, a purveyor of financial databases, estimates
Q82: Burke Corporation is investigating a lockbox system
Q84: Rainmaker Drains incurs a $35 cost each
Q85: Your firm generally receives 4 cheques a
Q86: Your firm generally receives 4 cheques a
Q87: Invention, Inc. receives an average of 250
Q88: MD Groceries currently sets its initial cash
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents