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Community Hospital has annual net patient revenues of $ 1 5 0 million. At the present time, payments received by the hospital are not deposited

Community Hospital has annual net patient revenues of $150 million. At the present time, payments received by the hospital are not deposited for 6 days on average. The hospital is exploring a lockbox arrangement that promises to cut the 6 days to 1 day. If these funds released by the lockbox arrangement can be invested at 8%, what will the annual savings be? Assume the bank fee will be $2,000 per month.

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