Roze Corporation Is Investigating a Lockbox System to Reduce Its

question 129

Multiple Choice

Roze Corporation is investigating a lockbox system to reduce its collection time. It has determined that on average, there are 405 payments with an average value of $1,200 each. If a lockbox system is implemented, the lockbox fee per transaction will be $0.65. If the collection time can be reduced by 4 days, and the daily interest on money market securities is.03%, then determine the net cash flow per day from adopting the system.

• A) $269.95
• B) $289.95
• C) $319.95
• D) $339.95
• E) $359.95

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