Flashbinder Guitars,Inc

question 71

Multiple Choice

Flashbinder Guitars,Inc.is considering a lockbox system that will increase its check processing cost by $.20 per check.The company estimates an average check size of $900 and expects any funds freed up by the new lockbox system can be invested in an account that earns 4% per year before taxes.What reduction in collection time is necessary for the lockbox to be beneficial to Flashbinder Guitars,Inc.?

• A) 1.96 days
• B) 2.03 days
• C) 1.73 days
• D) 2.15 days

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Definitions:

Long-term Version

The ability to focus on and plan for future achievements and outcomes over an extended period.

Scenario Planning

A strategic planning method that organizations use to envision and prepare for various future scenarios or outcomes.

Long-term Version

A strategic focus or approach that prioritizes long-term goals and outcomes over immediate gains or results.

Contingency Planning

The development of strategies and actions to deal with potential future events or situations that may disrupt normal operations.