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The Stetson Co

Question 167

Multiple Choice

The Stetson Co. receives an average of 340 checks a day. The average amount per check is $750. The firm is considering a lockbox system which it anticipates will reduce the average collection time by 2 days. The bank charges $.15 a check for this service. The daily interest rate on Treasury bills is.006 %. What is the average daily cost of the lockbox system?


A) $13.50
B) $27.00
C) $51.00
D) $112.50
E) $229.50

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