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Patel Lodging Corporation (PLC) collects $20,000,000 a year from major corporate clients. The average remittance check is $2,000. A lockbox system would shorten the float

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Patel Lodging Corporation (PLC) collects $20,000,000 a year from major corporate clients. The average remittance check is $2,000. A lockbox system would shorten the float by two days, but would cost $1,000 per year plus $.20 per check. PLC's relevant interest rate is 10 percent. Required: Cash Management Should PLC use this lockbox system? Use numbers to support your

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