Howton Mining expects to have credit sales of $8,000,000 this year.First National Bank is offering Howton Mining a lock-box system for $1,200 per month.Howton Mining estimates that the new lock-box system will reduce float by 4.5 days.What rate of return must Howton Mining earn on its marketable securities to make it worthwhile for the company to institute this lock-box system? Use a 365-day year.

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The Answer of Howton Mining expects to have credit sales of $8,000,000 this year.First National Bank is offering Howton Mining a lock-box system for $1,200 per month.Howton Mining estimates that the new lock-box system will reduce float by 4.5 days.What rate of return must Howton Mining earn on its marketable securities to make it worthwhile for the company to institute this lock-box system? Use a 365-day year.

Howton Mining Expects to Have Credit Sales of $8,000,000 This