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Anne Teak, the financial manager of a furniture manufacturer, is considering operating a lock-box system....

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Finance

Anne Teak, the financial manager of a furniture manufacturer, is considering operating a lock-box system. He forecasts that 400 payments a day will be made to lock boxed with an average payment size of $2,000. The banks charge for operating the lock boxes is $0.4 a check. The interest rate is 5.475% annually. If the lock box makes the cash available 2 days earlier, what is the net daily advantage of the system?

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