How much money can be saved annually by setting up a lock-box system that will process 500 cheques per day at a cost of $0.20 per cheque if each cheque averages $220, collection float is reduced by three days, and the annual interest rate is 8 percent?

A) $10,000
B) ($10,100)
C) $16,400
D) ($27,700)

Ans: B) ($10,100)

Business

You might also like to view...

When should a firm concentrate its production facilities in a centralized location?

A. When the production technology has a low minimum efficient scale B. When the production technology has low fixed costs C. When important exchange rates are expected to remain relatively stable D. When flexible manufacturing technologies are unavailable E. When the product's value-to-weight ratio is low

Business

Two of the most commonly used behavioral tactics in interviews are:

A. confidence and self-promotion B. confidence and self-monitoring C. ingratiation and self-promotion D. ingratiation and self-monitoring

Business