Dockery Enterprises Receives an Average of 340 Cheques a Day

question 196

Multiple Choice

Dockery Enterprises receives an average of 340 cheques a day. The average amount per cheque is $4,500. The firm is considering a lockbox system which it anticipates will reduce the average collection time by 3 days. The bank charges $.75 a cheque for this service. The daily interest rate on Treasury bills is.0125 %. What is the net present value of this lockbox arrangement?

• A) $1,534,000
• B) $1,750,000
• C) $2,165,000
• D) $2,550,000
• E) $3,075,000

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Definitions:

Intermediate Phenotype

A phenotype that represents a blend or a combination of two extreme phenotypic traits or forms found in a population.

Color Blindness

A genetic condition where a person's ability to perceive colors is altered or diminished due to abnormalities in certain photoreceptor cells in the eye.

Recessive

A genetic term describing an allele that is masked by the presence of a dominant allele in a heterozygous combination.

Hemizygous

Possessing only one allele for a particular locus; a human male is hemizygous for all X-linked genes. Compare with homozygous and heterozygous.