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The Granite Rock Manufacturing Company is considering the use of a lock-box collection system. Granite's average check receipt is $1,350. The company invests excess cash
The Granite Rock Manufacturing Company is considering the use of a lock-box collection system. Granite's average check receipt is $1,350. The company invests excess cash in money market certificates and receives an average of 3.5% annual interest. The lock-box system will speed up Granite's collections by 2.5 days. What is the maximum per check processing cost that Granite Rock Manufacturing Company should be willing to pay for the lock-box system? Please give a step-by-step answer on how to solve this
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