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Liquid Pot ( LP ) plans to establish a lockbox arrangement that would reduce its collection float by four ( 4 ) days. LP normally

Liquid Pot (LP) plans to establish a lockbox
arrangement that would reduce its collection float
by four (4) days. LP normally receives an average of
$210,000 in payments each day. If its opportunity
cost is 10 percent, how much should LP be willing
to pay each month for the lockbox arrangement?
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