Question: Question 2 (1 point) A company is considering implementing a lockbox system. There is an annual $7,350 plus a transaction fee of $0.05 per payment.

Question 2 (1 point) A company is considering implementing a lockbox

Question 2 (1 point) A company is considering implementing a lockbox system. There is an annual $7,350 plus a transaction fee of $0.05 per payment. The average size of custom payments is $3,505, and there are 37 payments made daily on average. The company can earn an EAR of 3.63% on its cash balances. For the lockbox syste be adopted with a positive NPV, by how many days should the average collectic time be reduced at a minimum? Fractional answers are OK. (Assume 365 days year.) 1.66 1.71 1.75 1.79 1.84 Page 2 of 2 Previous Page Next Page

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