Hand Tools,Inc.receives an average of 611 checks a day.The average amount per check is $425.The firm is considering a lockbox system which it anticipates will reduce the average collection time by 1 day.The bank charges $0.275 a check for this service.The daily interest rate on Treasury bills is 0.013 percent.What is the average daily cost of the lockbox system?
A) $31.16
B) $54.19
C) $168.03
D) $180.11
E) $199.19
Correct Answer:
Verified
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