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Rosewell International receives an average of 268 checks a day with an average amount per check of $780. The firm is considering a lockbox system
Rosewell International receives an average of 268 checks a day with an average amount per check of $780. The firm is considering a lockbox system which it anticipates will reduce the average collection time by 1.4 days. The bank charges $0.21 a check for this service. The daily interest rate on Treasury bills is 0.02 percent. What is the net present value of this lockbox arrangement?
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