What other methods of collecting payments would you suggest

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Question - The Valley Appliance Company is determining whether or not to install a drop box for afterhours payments to speed up the process of receiving payments. Customers will now be able to drop off their check payments in the drop box. Doing so, the firm has the potential to receive and process over 12,000 checks annually. However, their bank currently charges $.45 per check. The cash that can be available by using this system can be invested to yield 10% on an annual pre-tax basis.

Discuss how the drop box will improve or make the company worse off.

What other methods of collecting payments would you suggest Valley implement that may minimize processing time?

Discuss the possible benefits and pitfalls of the alternative methods.

Identify the opportunity cost of offering a discount for cash paying customers.

Reference no: EM132997290

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