What Are the Expected Annual Savings from a Lock-Box System

question 53

Multiple Choice

What are the expected annual savings from a lock-box system that collects 150 cheques per day averaging $500 each, and reduces mailing and processing times by 2.5 and 1.5 days respectively, if the annual interest rate is 7 percent?

• A)$5,250
• B)$13,125
• C)$21,000
• D)$300,000

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Definitions:

Sales Presentation

A formal or informal pitch or demonstration offered by a salesperson to a prospective buyer to persuade them to purchase a product or service.

Time Limitations

Constraints set on the duration within which a task must be completed or a decision must be made, often influencing the urgency of action.

Thinker Personality

A type of personality characterized by analytical, logical, and objective thought processes, often associated with problem-solving and decision-making.

Methodical

The term 'methodical' describes a systematic, orderly approach to tasks or activities, often emphasizing careful planning and organization.