Thrifty Corp

question 32

Essay

Thrifty Corp.is establishing a lock-box system to reduce time in the collection process.They anticipate saving two days of mail time and.75 days of processing time through the system.Six hundred payments are expected to be collected daily, at an average size of $200.The appropriate interest rate is 6 percent per year.What is the break-even charge per item that you could consider paying to a bank for providing this service?

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Definitions:

Recipient

An individual or entity that receives something from another, such as a gift, message, or email.

Buffer

In computing, a buffer is a temporary storage area for data while it is being moved from one place to another, commonly used to manage differences in data processing rates.

Letter Declining

Written communication expressing a polite refusal of an offer, invitation, or proposal.

Job Offer

A formal proposal by an employer to a potential employee outlining the terms of employment, including position, salary, and benefits.