Question
Dambala Music receives an average of 234 checks a day with an average amount of $463 per check. The installation of a lockbox system would
Dambala Music receives an average of 234 checks a day with an average amount of $463 per check. The installation of a lockbox system would reduce the average collection time by 3.6 days at a cost of $.28 per check. The daily interest rate on Treasury bills is .0028 percent. What is the average daily cost of the lockbox system?
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Public Finance Administration
Authors: B. J. Reed, John W. Swain
2nd Edition
0803974051, 978-0803974050
