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

question 7

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 Annual savings = average collections x time saved x annual interest rate
• = 150 x $500 x (2.5 + 1.5) x .07

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Definitions:

Functionalists

In psychology, theorists who focus on how mental and behavioral processes function—how they enable the organism to adapt, survive, and flourish.

Consciousness

The state or quality of awareness, or, of being aware of an external object or something within oneself.

Useful Purpose

A goal or outcome that serves an advantageous function or satisfies a need.

Behaviourism

A school of psychology that focuses on observable behavior rather than mental states, emphasizing the environmental influences on behavior.