How Much Time Must Be Saved to Justify a Lock-Box

question 35

Multiple Choice

How much time must be saved to justify a lock-box system that processes 350 checks per day at an average amount of $400 per check if the system will cost $20,000 annually and interest rates average 8%?

• A) 0.56 days
• B) 1.79 days
• C) 2.14 days
• D)7.00 days

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Definitions:

International Trade

The exchange of goods and services across international borders or territories, involving importation and exportation.

Equilibrium Price

The market price at which the supply of an item matches demand, resulting in stable prices and volumes traded.

Per-unit Tariff

A fixed fee imposed by a government on each unit of imported or exported goods.

Tariff Revenue

Income that a government receives from imposing duties on imported goods.