You Are Considering Implementing a Lockbox System for Your Firm

question 55

Multiple Choice

You are considering implementing a lockbox system for your firm.The system is expected to reduce the average collection time by 1.2 days.On an average day,your firm receives 320 checks with an average value of $99 each.The daily interest rate on Treasury bills is 0.014 percent.What is the anticipated amount of the daily savings if this system is implemented?

• A)$2.61
• B)$3.29
• C)$4.45
• D)$5.32
• E)$5.78

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Definitions:

Footprint

In a technological context, the term often refers to the amount of space occupied by a device, or the environmental impact of producing and disposing of it.

GEO

A Geostationary Earth Orbit is a circular path located 35,786 kilometers directly above the Earth's equator, moving in the same direction as the Earth rotates.

LEO

stands for Low Earth Orbit, which is an orbit relatively close to the Earth's surface, used for many types of satellites, including those for communication, observation, and science.

MEO

Medium Earth Orbit, a region of space around the Earth above low Earth orbit (LEO) and below geostationary orbit, often used for satellites, including for communications and navigation purposes.