How will the following conditions affect the price that a firm should be willing to pay for

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How will the following conditions affect the price that a firm should be willing to pay for a lockbox service?

a. The average size of its payments increases, but the number stays the same.

b. The number of payments per day increases (with no change in average size of payments).

c. The interest rate increases.

d. The average mail time saved by the lock-box system increases.

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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