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Norris Company has average daily receipts of $8.000.000 (5000 checks, $1600 per check), with delay time 5 days. Norris Company want to use lockbox system,
Norris Company has average daily receipts of $8.000.000 (5000 checks, $1600 per check), with delay time 5 days. Norris Company want to use lockbox system, but they are confused which bank should they choose. European Bank offer lockbox system, $1000 per day to decrease 2 days of the collection time. Asian Bank offer $2500 per day, to make the delay time from 5 days become 2 days only. Both bank have 0,01 percent interest rate daily. Which Bank should Norris Company choose? Why?
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