Implementing the lock box system, Finance Basics

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Implementing the lock box system

Suppose that Mail Box, Inc. receives $2,000,000 per day from its customers in the form of checks. It now requires 5 days on average to process the checks. A lock box system will reduce the process time by 2 days (2 days saved) and will cost $330,000. If the firm's cost of capital is 8%, should they implement the lock box system?

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Finance Basics: Implementing the lock box system

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Finance Basics: Implementing the lock box system

Reference No:- TGS041030

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Evaluate relationship of european euro-american economy

Q : Perpetual inventory system concept

Q : Calculating the profitability index

Q : Which entry should penn make to assign the factory payroll

Q : Implementing the lock box system

Q : What is the gdp of island in terms of clamshells

Q : Taxes for clients and brags

Q : Reduction in cash conversion cycle

Q : Assets must grow in proportion to sales

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Implementing the lock box system

Reference No:- TGS041030

Recent Questions Asked Finance Basics

Q : Evaluate relationship of european euro-american economy

Q : Perpetual inventory system concept

Q : Calculating the profitability index

Q : Which entry should penn make to assign the factory payroll

Q : Implementing the lock box system

Q : What is the gdp of island in terms of clamshells

Q : Taxes for clients and brags

Q : Reduction in cash conversion cycle

Q : Assets must grow in proportion to sales

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