What is the daily dollar return that could be earned

Reference no: EM13273251

It takes Cookie Cutter Modular Homes, Inc., about six days to receive and deposit checks from customers. Cookie Cutter Modular Homes management is considering a lockbox system to reduce the firm's collection times. It is expected that the lockbox system will reduce receipt and deposit times to three days total. Average daily collections are $122,000, and the required rate of return is 5 percent per year. Assume 365 days per year. What is the daily dollar return that could be earned on these savings?

Reference no: EM13273251

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