Brett's,Inc

question 59

Essay

Brett's,Inc.has received a proposal from its bank to establish a lock-box system to accelerate the receipt of $600 million annually on 900,000 checks.By its own analysis,Brett's,Inc.believes such a system would decrease total float by 3.5 days.If Brett's,Inc.can earn 7 percent before taxes on the released funds,what is the maximum that Brett's,Inc.should be willing to pay the bank per check for the service? Use a 365-day year.

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Definitions:

Job Enrichment

A management strategy that enhances job content by adding tasks that increase responsibility, autonomy, and the scope of tasks performed.

Autonomy

The condition or quality of being autonomous; independence or the right to self-govern.

Core Dimensions

Fundamental factors or aspects that define and shape the nature of a particular entity, concept, or system.

Task Significance

The degree to which a job has a substantial impact on the lives or work of other people, either in the immediate organization or the external environment.