You Are Considering Implementing a Lockbox System for Your Firm

question 123

Multiple Choice

You are considering implementing a lockbox system for your firm. The system is expected to reduce the collection time by 2 days. On an average day, your firm receives 460 cheques with an average value of $350 each. The daily interest rate on Treasury bills is.01 %. The bank charge per cheque would be $.20. What is the anticipated daily cost of the lockbox system?

• A) $16.10
• B) $92.00
• C) $108.10
• D) $123.60
• E) $161.00

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Definitions:

Public Trust

The confidence that the public has in the integrity, responsibility, and fairness of government, corporations, and other institutions.

Federal Government

The national government of a federation that has authority over the individual member states, and is responsible for areas such as defense, foreign affairs, and the economy.

Milton Friedman

An American economist and Nobel Prize laureate recognized for his research in consumption analysis, monetary history and theory, and the complexity of stabilization policy.

Prosperity and Freedom

Concepts often linked in political and economic discourse, suggesting that economic success leads to or enhances personal and civic liberties.