Question: Wilson Publishers is considering implementing a lockbox system that is expected to reduce average collection time by 2.5 days. On an average day, the company

Wilson Publishers is considering implementing a lockbox system that is expected to reduce average collection time by 2.5 days. On an average day, the company receives 1,327 checks with an average value of $49 each. The daily interest rate on Treasury bills is .011 percent. What is the anticipated amount of the daily savings if this system is implemented?

Multiple Choice

$2.48
$15.78
$17.88
$13.29
$14.45

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

A company is considering implementing a lockbox system. If the system is implemented, the collection time will be reduced by 2 days. The average number of payments per day is 1,055, with an average...

Question 24 (1 point) A company is considering implementing a lockbox system. If the system is implemented, the collection time will be reduced by 2 days. The average number of payments per day is...

Question 22 (1 point) A company is considering implementing a lockbox system. If the system is implemented, the collection time will be reduced by 2 days. The average number of payments per day is...

Question 11 (1 point) A company is considering implementing a lockbox system. If the system is implemented, the collection time will be reduced by 2 days. The average number of payments per day is...

Question 5 (1 point) A company is considering implementing a lockbox system. If the system is implemented, the collection time will be reduced by 2 days. The average number of payments per day is...

International Shoppes receives an average of 418 checks a day with an average amount per check of $607. A lockbox system is expected to reduce the average collection time by 2.3 days. The daily...

The Hat Box receives an average of 418 checks a day with an average amount per check of $607. A lockbox system is expected to reduce the average collection time by 2.3 days. The daily interest rate...

International Shoppes receives an average of 418 checks a day with an average amount per check of $607. A lockbox system is expected to reduce the average collection time by 2.3 days. The daily...

A lockbox system is expected to reduce the average collection time by 2.7 days for Grand Corporation . On an average day, the firm receives 1,611 checks with an average value of $1,681 each. The...

BHK Corporation receives an average of 260 checks a day with an average value of $500 each. The firm is considering a lockbox system which is expected to reduce the average collection time by 1.2...

Is the stream an annuity?

The following information pertains to Torasic Companys budgeted income statement for the month of June 2011: Sales (1,200 units at $250) $300,000 Variable cost 150,000 Contribution margin $150,000...

Which of the following is considered an estimate? Multiple Choice = 1 2 = 1 2 x = 2 0 x = 2 0 = 3 . 2 = 3 . 2 2 = 1 0

A company is preparing completing their Cash Budget. The following data has been prepared for cash receipts and payments. January February March Cash receipts $1,061,200 $1,182,400 $1,091,700 Cash...