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Business, 27.05.2020 18:57 xjsg

You are considering implementing a lockbox system for your firm. The system is expected to reduce the collection time by 4 days. On an average day, your firm receives 930 checks with an average value of $450 each. The daily interest rate on Treasury bills is .03 percent. The bank charge per check would be $.52 What is the net present value of this lockbox arrangement?

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