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You are considering implementing a lockbox system for your firm. The system is expected to reduce the collection time by 3 days. On an average day, your firm receives 1,380 checks with an average value of $780 each. The daily interest rate on Treasury bills is 0.015 percent. The bank charge per check would be $.34. What is the net present value of this lockbox arrangement?

a. $101,200

b. $99,176

c. $77,924

d. $59,708

e. $89,056

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91931829

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