Foster, Inc., is considering implementing a lockbox collection system at a cost of $80,000 per year. Annual sales are $90 million, and the lockbox system will reduce collection time by 3 days. If Foster can invest funds at 8%, should it use the lockbox system? Assume a 360-day year.

Yes, producing savings of $140,000 per year.
Yes, producing savings of $60,000 per year.
No, producing a loss of $20,000 per year.
No, producing a loss of $60,000 per year

Answer rating: 100% (QA)

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