You Are Considering Implementing a Lockbox System for Your fiRm

question 165

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 1,650 checks with an average
Value of $910 each. The daily interest rate on Treasury bills is .02 percent. The bank charge per
Check would be $.35. What is the net present value of this lockbox arrangement?

• A) $115,500
• B) $212,750
• C) $300,300
• D) $525,525
• E) $600,600

---

Definitions:

Marijuana Use

The consumption of cannabis, which can have various effects, both medicinal and recreational, on the body and mind.

Respiratory Diseases

A group of diseases that affect the lungs and other parts of the respiratory system, leading to a wide range of health problems.

Sterility

The incapacity to reproduce or achieve pregnancy after a specified period of trying, applicable to both sexes.

Memory Problems

Difficulties in remembering information, which can range from mild forgetfulness to severe issues affecting daily life.