Lock Boxes

[kprice55]

Anne Teak, the financial manager of a furniture manufacturer, is considering operating a lock-box system. She forecasts that 400 payments a day will be made to lock boxes with an average payment size of $2,000. The bank's charge for operating the lock boxes is $.40 a check. The interest rate is .015 percent per day.
a) If the lock box saves 2 days in collection float, is it worthwhile to adopt the system?
b) What minimum reduction in the time to collect and process each check is needed to justify use of the lock-box system?

[HelpfulHarry]

A Kangaroo

[redcrx]

Id be able to do it if it was in �s and Ps

what a shame, looks like you'll have to work it out yourself, afterall you were possibly in the maths class

[Markandshez]

That will teach you to listen to your tutor

[Bird Legs]

PLEASE, redcrx - or anyone else -, tell me what difference it makes whether in Sterling, or in Dollars.

[redcrx]

no difference at all bird legs, its the kangeroo that causes the problem, do i carry it over or not?

The OP just needs a bit of a push to think about it themself. Its too easy to post homework on AB and expect people to do it for you dont you think?