Question: A lockbox system will cost $.42 per check and reduce the average collection time by 1.4 days for a company that receives 164 checks per

A lockbox system will cost $.42 per check and reduce the average collection time by 1.4 days for a company that receives 164 checks per day with an average value of $219 per check. The daily interest rate on Treasury bills is .011 percent. What is the anticipated daily cost of the lockbox system?

Multiple Choice

$57.81

$23.23

$96.43

$68.88

$9.25

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