Hand Tools,Inc

question 86

Multiple Choice

Hand Tools,Inc.receives an average of 611 checks a day.The average amount per check is $425.The firm is considering a lockbox system which it anticipates will reduce the average collection time by 1 day.The bank charges $0.275 a check for this service.The daily interest rate on Treasury bills is 0.013 percent.What is the average daily cost of the lockbox system?

• A)$31.16
• B)$54.19
• C)$168.03
• D)$180.11
• E)$199.19

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Definitions:

Brewery

An establishment focused on the production of beer through the fermentation process, which may also serve as a venue for selling and tasting.

Nominal Damages

A small monetary award (often one dollar) granted to a plaintiff when no actual damage was suffered or when the plaintiff is unable to show such loss with sufficient certainty.

Loss of the Bargain

The difference between the value of what was promised in a contract and what was actually delivered, potentially leading to damages in a breach of contract case.

Acted Wrongfully

Engaging in actions that are illegal, unethical, or contrary to established norms, often resulting in harm or disadvantage to others.