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Greeley Corp has a credit sales of $8,500,000 per year, billed on a continuous basis. Greeley is considering implementing a lockbox system to reduce the
Greeley Corp has a credit sales of $8,500,000 per year, billed on a continuous basis. Greeley is considering implementing a lockbox system to reduce the float time from 9 days to 5 days. Greeley has other equally risky investments that earn 10%. If the cost of the lockbox system is $10,000, Greeley should employ the lockbox system (assume 365 days).
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