Problem 2: A firm is trying to decide where to locate its lockbox. Cheques come to the firm from three different locations, and the firm has received proposals for lockboxes in two of these locations. Data on the lockbox proposals are: Proposal Number 1 2 Lockbox Location A B Yearly Fixed Lockbox Charge Tk. 10,000 Tk.15,000 Processing Charge per Cheque Tk.0.10 Tk. 0.15 Clearing and Processing Float 1.5 days 1.0 days Dr. S. M. Sohrab Uddin, Professor, Department of Finance, CU Page 6 of 11 Mail Time Data (days): Destination Origin M N A 2.3 3.0 3.5 B 3.0 2.2 3.2 The cheque originating data is: Origin Daily Receipts from this Origin Location M Tk. 10,000,000 N Tk.15,000,000 Tk.12,000,000 Yearly Number of Cheques from this origin Location 2,500,000 3,500,000 4,500,000 The firm's required return is 8.5 percent. Where should the firm locate the lockbox? Problem 2: A firm is trying to decide where to locate its lockbox. Cheques come to the firm from three different locations, and the firm has received proposals for lockboxes in two of these locations. Data on the lockbox proposals are: Proposal Number 1 2 Lockbox Location A B Yearly Fixed Lockbox Charge Tk. 10,000 Tk.15,000 Processing Charge per Cheque Tk.0.10 Tk. 0.15 Clearing and Processing Float 1.5 days 1.0 days Dr. S. M. Sohrab Uddin, Professor, Department of Finance, CU Page 6 of 11 Mail Time Data (days): Destination Origin M N A 2.3 3.0 3.5 B 3.0 2.2 3.2 The cheque originating data is: Origin Daily Receipts from this Origin Location M Tk. 10,000,000 N Tk.15,000,000 Tk.12,000,000 Yearly Number of Cheques from this origin Location 2,500,000 3,500,000 4,500,000 The firm's required return is 8.5 percent. Where should the firm locate the lockbox