The expected daily savings of the lockbox system

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Reference no: EM131564396

Nelson Tree Disposal receives an average of 400 checks a day. The average amount per check is $525. The firm is considering a lockbox system which it anticipates will reduce its average collection time by 2.5 days. The daily interest rate on Treasury bills is 0.016% (not 1.6%). What is the amount of the expected daily savings of the lockbox system?

Reference no: EM131564396

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