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What decision should the firm make

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Question - A firm is evaluating whether to establish a startbox system. The bank will charge $30,000 per year for the lockbox and the firm will save approximately $8,000 in internal processing costs. The firm estimates that the float will be reduced by three days if the lockbox system is put into place. Assuming that the average daily cash receipts are $350,000 and short-term interest rates are 4%, what decision should the firm make regarding the start-box system?

Reference no: EM133176793

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