Linkup Systems,which Provides Investors with Computerized Information About Stock Prices,is

question 116

Essay

Linkup Systems,which provides investors with computerized information about stock prices,is considering the establishment of a lockbox system with its bank.The firm receives daily remittances of $1.5 million,and could earn 9% on any funds freed up through faster collections.If the lockbox system can save 2 days in the collection process,and the firm's bankers will charge $200,000 per year to operate the lockbox system,is it worth it to establish the system?

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Definitions:

Germany

A country in Central Europe known for its rich cultural history and strong economy.

Japan

A country located in East Asia, known for its rich culture, technological advancements, and as a major economic power.

Italy

A country located in southern Europe, known for its rich history, culture, art, and contributions to cuisine, fashion, and science.

Nominal Wages

The wages paid to employees measured in current money, without adjustment for inflation or purchasing power.