What is the anticipated daily cost of the lockbox system


You are considering implementing a lockbox system for your firm. The system is expected to reduce the average collection time by 1.3 days. On an average day, your firm receives 136 checks with an average value of $219 each. The daily interest rate on Treasury bills is 0.021% (not 2.1%). The bank charge per check is $0.22. What is the anticipated daily cost of the lockbox system?

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Business Management: What is the anticipated daily cost of the lockbox system
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