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You are considering implementing a lockbox system for your firm. The system is expected to reduce the collection time by 3 days. On an average

You are considering implementing a lockbox system for your firm. The system is expected to reduce the collection time by 3 days. On an average day, your firm receives 1,470 checks with an average value of $660 each. The daily interest rate on Treasury bills is .04 percent. The bank charge per check would be $.67 What is the net present value of this lockbox arrangement?

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