A Delaware Bank Has Offered to Set Up a Lock-Box

question 30

Multiple Choice

A Delaware bank has offered to set up a lock-box arrangement to process Union Oil Company of California's (UNOCAL) credit card payments from customers in 8 mid-Atlantic states for an annual fee of $150,000 plus $0.05 per payment. Total collections from this area are $547.5 million annually, consisting of an average of 10 payments per year from 1,100,000 credit card customers. Average mailing time for customers from this region would be reduced from 3.5 days currently to 2 days with the lock-box system. Check processing and clearing time also would be reduced from the current 5 days to 1.5 days with the lock-box arrangement. Establishment of the lock-box system would reduce annual payment processing costs at its Los Angeles headquarters by $250,000 and reduce the compensating balance at its Los Angeles bank by $500,000. The Delaware bank will not require UNOCAL to maintain a compensating balance if it establishes a lock-box system. Funds released by the lock-box arrangement can be invested elsewhere in the firm to earn 15% per annum pretax. Determine the net pretax benefits to UNOCAL of establishing the lock-box system with the Delaware bank. (Assume 365 days per year in all calculations.)

• A) $675,000
• B) $750,000
• C) $500,000
• D) $450,000

Identify the criticisms and advantages of cognitive and cognitive-behavioral therapies.

Recognize the goals and applications of cognitive-behavioral therapy in treating various disorders.

Differentiate between the various types of therapy (e.g., insight, humanistic, family counseling) and their goals.

Understand the role and benefits of family and group therapies in treating psychological disorders.

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Definitions:

Methylphenidate

A stimulant drug used to treat attention deficit hyperactivity disorder (ADHD) and certain sleep disorders.

Successful Collaboration

Successful collaboration involves working jointly with others in an effective and efficient manner to achieve common goals or complete tasks.

Collaboration

The process of two or more people or organizations working together to complete a task or achieve a goal.

Meeting Minutes

The written record of the main points discussed and decisions made during a meeting, meant to serve as an official document.