In which situation below would a lock-box system likely produce greater benefits?

Question

Quizplus · Accepted Answer

A lock-box system is more beneficial when interest rates are high because the system reduces the time it takes for a company to receive and process payments. This acceleration in cash flow is more valuable when the cost of borrowing is high, as it allows the company to either reduce its interest expenses by decreasing the need for short-term borrowing or to earn more on its short-term investments.

In Which Situation Below Would a Lock-Box System Likely Produce