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Linkup Systems,which Provides Investors with Computerized Information About Stock Prices,is

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Linkup Systems,which provides investors with computerized information about stock prices,is considering the establishment of a lockbox system with its bank.The firm receives daily remittances of $1.5 million,and could earn 9% on any funds freed up through faster collections.If the lockbox system can save 2 days in the collection process,and the firm's bankers will charge $200,000 per year to operate the lockbox system,is it worth it to establish the system?


Definitions:

Transference

A psychological phenomenon where feelings, desires, and expectations from one person are redirected and applied to another.

Gain-loss Theory

A theory suggesting that increases and decreases in the perceived likelihood of reward lead to increases and decreases in attraction and motivation.

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The subjective feeling of isolation or disconnection from others, often accompanied by sadness or distress.

Individualistic Cultures

Cultures that emphasize the needs and goals of the individual over the needs and goals of the group.

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