Fickle Sickles collects 15,000 checks per 365-day year with average amount $170 and total delay 5 days. A lockbox system would reduce that delay to 3 days, and it would also reduce FISI's check processing costs by $.01 per check. The annual fee on the lockbox would be $2,500. What is the annual net benefit associated with using the lockbox? FISI has an 7% cost of capital.

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Fickle Sickles Lockbox Analysis We can calculate the annual net benefit of using the lockbox by cons... View the full answer