Wilson Publishers Is Considering Implementing a Lockbox System That Is

question 76

Multiple Choice

Wilson Publishers is considering implementing a lockbox system that is expected to reduce average collection time by 2.5 days. On an average day, the company receives 1,327 checks with an average value of $49 each. The daily interest rate on Treasury bills is .011 percent. What is the anticipated amount of the daily savings if this system is implemented?

• A) $2.48
• B) $13.29
• C) $14.45
• D) $17.88
• E) $15.78

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Definitions:

Business Income

Income generated from the day-to-day activities of running a business or company, including revenues from sales and services minus costs and expenses.

Emigrate

To leave one's country of origin to live permanently in another.

Economic Immigration

The movement of individuals from one region to another for the purpose of seeking better employment opportunities, contributing to the workforce and economic growth of the host country.

Illegal Immigrants

Individuals who enter or reside in a country without the appropriate legal permission or documentation required by that country.