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It takes Blitz Inc., about five days to receive and deposit checks from customers. The company's management is considering a lockbox system to reduce the

It takes Blitz Inc., about five days to receive and deposit checks from customers. The company's management is considering a lockbox system to reduce the firm 's collection times. It is expected that the lockbox system will reduce receipt and deposit times to three days total. Average daily collections are $141,900 and the required rate of return is an EAR of 7 percent

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