Fickle Sickles collects 15,000 checks per 365-day year with average amount $170 and total delay 5...

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Fickle Sickles collects 15,000 checks per 365-day year with average amount $170 and total delay 5 days. A lockbox system woul

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Answer 1

Answer #1

Daily checks = 15000/365

Amount released by lockbox system = (15000/365)* 2 days*$170 = 13972.60

Interest earned on float reduction = 13972.60*7% = 978.08

Saving in processing = 0.01*15000 = 150

Additional cost = 2500

Hence Net benefit = 978.08+150-2500 = -1371.92

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Answer 2

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Fickle Sickles collects 15,000 checks per 365-day year with average amount $170 and total delay 5...

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Fickle Sickles collects 15,000 checks per 365-day year with average amount $170 and total delay 5...

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