Hand Tools,Inc

question 86

Multiple Choice

Hand Tools,Inc.receives an average of 611 checks a day.The average amount per check is $425.The firm is considering a lockbox system which it anticipates will reduce the average collection time by 1 day.The bank charges $0.275 a check for this service.The daily interest rate on Treasury bills is 0.013 percent.What is the average daily cost of the lockbox system?

• A)$31.16
• B)$54.19
• C)$168.03
• D)$180.11
• E)$199.19

---

Definitions:

Public Corporation

A corporation whose stock anyone may buy, sell, or trade.