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Lockbox System Cost-Benefit Analysis by Bryent Gaw is a document available to read on EtoBox.

JET Corporation is considering implementing a lockbox system to reduce the time it takes to receive and deposit customer payments from 7 days to 5 days. With average daily collections of $500,000 and an interest rate of 12%, the maximum monthly charge for the lockbox system should be $10,000. Barkley Corporation is exploring a lockbox system that would cost $100,000 per year. With a 2 day reduction in float and daily collections averaging $350,000 at a 15% interest rate, the net advantage of the system is

Author

Bryent Gaw

Language

EN