What annual before tax yield must martin inc earn on its


Martin Inc is considering a lock box system that will increase its check processing cost by $0.15 per check. The company estimates an average check size of $1700 and expects the lock box to reduce check collection by 3 days. What annual before tax yield must martin inc earn on its marketable securities for the system to be beneficial?

A)1.118% B)1.825% C)0.735% D)1.074%

 

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Finance Basics: What annual before tax yield must martin inc earn on its
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