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Proposed lockbox system

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Aqua System Inc. expects to have $10,402,900 in credit sales during the coming year. Currently all checks are sent to the home office. A proposed lockbox system can eliminate 4 days of float, releasing funds which, when invested, will earn 13.56 percent per year. What annual savings can Aqua System expect if the system is implemented? Use a 365-day year.

Reference no: EM131569206

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