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What would be the net benefit to the company

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Reference no: EM132899833

Problem 1: MTR bank has agreed to provide a lockbox system to Sexy Inc. for a fixed fee of P50, 000 per year and a rate of P.50 for each payment processed by the bank. On average, Sexy Inc. receives 50 payments per day, each averaging P20,000. With the lockbox system, the company's collection float will decrease by two days. The annual interest rate on money market securities is 6%. If Sexy Inc. makes use of the lockbox system, what would be the net benefit to the company? Use 365 days in a year.

Option 1: P120,000
Option 2: P60,875
Option 3: P59,125
Option 4: P50,000

Reference no: EM132899833

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