The Mesa Bank Is Offering Your Company the Use of Their

question 11

Essay

The Mesa Bank is offering your company the use of their loclbox services. they estimate that you can reduce your average mail time by 2 days and they can sava ypu a combined clearing and processing time of 1.5 days by butting the checks into the clearing system sooner. the firm recives 320 checks a day on average written for $2,500. the current T-Bill rate is 4% or .0107% per day.
-Refer to the above scenario.If Mesa will charge your firm an annual fee of $35,000 and $.20 per check handled will you accept Mesa's services?

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Definitions:

Stainless Steel

A corrosion-resistant alloy steel containing chromium, used in a wide variety of applications for its durability and appearance.

Non-Reactive

Describes substances that do not easily undergo chemical reactions with other substances under given conditions, often related to material safety and stability.

Silicone RTV

A room-temperature-vulcanizing silicone used as a sealant or adhesive, capable of forming durable, flexible seals resistant to temperature and moisture.

Sealed Trailer

A type of trailer designed to be completely closed off from external elements, often used for the transportation of goods that require protection from the environment.