Question: A company is evaluating a lockbox system proposal. The average number of payments received by the company per day is 1 , 5 0 0
A company is evaluating a lockbox system proposal. The average number of payments received by the company per day is and the average payment amount is $ The bank proposing th system will charge the company a variable cost of $ per transaction ie payment proceeds in addition to a $ annual fee. The bank has eliminated that use of the lockbox system will reduce the companies collection time by two days. The annual interest rate is
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