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I don't understand this. Please thoroughly explain. I ' m trying to complete with paper and pencil. Please fully explain how I show calculate not
I don't understand this. Please thoroughly explain. Im trying to complete with paper and pencil. Please fully explain how I show calculate not understanding how.
P Lockbox system Eagle Industries believes that a lockbox system can shorten its accounts
receivable collection period by three days. Credit sales are $ per year, billed on a
continuous basis. The firm has other equally risky investments that earn a return of The cost
of the lockbox system is $ per year. Note: Assume a day year.
a What amount of cash will be made available for other uses under the lockbox system?
b What net benefit cost will the firm realize if it adopts the lockbox system? Should it adopt the
proposed lockbox system?
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