A Firm Has a Daily Average Collection of Checks Equal

question 121

True/False

A firm has a daily average collection of checks equal to $250,000. It takes the firm approximately 4 days to convert the funds into usable cash. Assume (1) a lockbox system could be employed which would reduce the cash conversion procedure to 2 ½ days and (2) the firm could invest any additional cash received at 6 percent after taxes. The lockbox system would be a good buy if it costs only $23,000 annually.

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Definitions:

Estimator Variables

Characteristics of the witness, the crime, and the witness’s testimony that are not under the control of the justice system but that may provide information about the likely accuracy of an eyewitness identification.

Mistaken Identifications

Incorrectly recognizing or labeling individuals or objects, often leading to errors in decision-making or judgment.

Jury Simulations

Research experiments designed to study the decision-making process of jury members in a controlled environment.

Double-Blind Testing

A lineup administration in which neither the police officer nor the witness knows which lineup member is the suspect.