Your firm has an average receipt size of 155 a bank has


Your firm has an average receipt size of $155. A bank has approached you concerning a lockbox service that will decrease your total collection time by 2 days. You typically receive 5,500 checks per day. The daily interest rate is .015%. If the bank charges a fee of $175 per day, should the lockbox project be accepted? If so what would be the savings?

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Financial Management: Your firm has an average receipt size of 155 a bank has
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