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Tamu is considering the implementation of a lockbox collection system for its mid-western and western sales regions. Sales in those two regions are 40 percent

Tamu is considering the implementation of a lockbox collection system for its mid-western and western sales regions. Sales in those two regions are 40 percent of Tamus annual sales of $600 million. The lockbox system will cost $160,000 a year and reduce collection time by 3 days. If Tamu could invest any released funds at 8 percent, should it use the lockbox system? Why or why not? Assume 365 days per year

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