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 percent. 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
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