On average, a firm collects checks totaling $250,000 per day. It takes the firm approximately 4...

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On average, a firm collects checks totaling $250,000 per day. Ittakes the firm approximately 4 days from the day the checks weremailed until they result in usable cash for the firm. Assume that(1) a lockbox system could be employed which would reduce the cashconversion procedure to 2 1/2 days and (2) the firm could investany additional cash generated at 6% after taxes. The lockbox systemwould be a good buy if it costs $25,000 annually.
a. True
b. False

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On average, a firm collects checks totaling $250,000 per day. Ittakes the firm approximately 4 days from the day the checks weremailed until they result in usable cash for the firm. Assume that(1) a lockbox system could be employed which would reduce the cashconversion procedure to 2 1/2 days and (2) the firm could investany additional cash generated at 6% after taxes. The lockbox systemwould be a good buy if it costs $25,000 annually.a. Trueb. False