Please calculate and explain in non excell way 16,2 - questions A-C First part of...
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Please calculate and explain in non excell way 16,2 - questions A-C First part of question firm receives $325,000 average payments of day, (rest of problem in picture)
603 ILS excess of the could per day. On average, it takes four days for the firm to receive payment from the time customers mail their checks to the time the fum receives and processes them. A lockbox sywem that consists of ren local depository banks and a concentration bank in San Francisco would require Drugs R Us to pay a fixed fee of $6,500 per mooth. Under this system, customers' checks would be received at the lockbox locations one day after they are mailed, and the daily toral would be wired from each local bank to the concentration bank at a cost of $9.75 per wire (this additional fee would be paid by Drugs 'R Us). Assume that Drugs R Us could carn 10 percent on marketable securities and that there are 200 working days and hence 260 transfers from each lockbox location per year a. What is the total annual cost of operating the lockbox system: b. What is the dollar benefit of the lockbox system to Drugs 'R ie cycle c. On purely financial grounds, should the firm initare the lockbox system? Scattle Health System offers terms
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