If Merilee Industries Installs a Lockbox System It Should Reduce

question 43

Multiple Choice

If Merilee Industries installs a lockbox system it should reduce its average collection time by 2.2 days at a cost of $.75 per check. On an average day, 594 checks with an average value of $4,618 each are received. The daily interest rate on Treasury bills is .009 percent. What is the net present value of this lockbox arrangement?

• A) $4,073,492
• B) $2,011,575
• C) $1,387,419
• D) $1,084,802
• E) $974,608

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Definitions:

Antinomianism

A religious belief that rejects traditional moral law as unnecessary for Christians under the gospel, focusing instead on personal faith and the grace of God.

Own Judgment

The use of personal discretion or decision-making abilities, especially in situations requiring moral, ethical, or practical considerations.

Mary Rowlandson

An English American woman who was captured by Native Americans during King Philip's War and later wrote a narrative about her experience, which is considered a significant literary work of the colonial period.

Brutality

Extreme cruelty or violence, often used in the context of law enforcement or military force against civilians.