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    Rate of return on weekly investments, Lock box

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    8) A company's weekly cash position is as follows:
    ? Week 1 $24,000
    ? Week 2 $34,000
    ? Week 3 $10,000
    ? Week 4 $15,000
    The annual interest rate for investments is 12% what return can the company earn on these weekly investments.

    9) A company with most of its customers in New York, has decided to consider using a lock box to help improve it's cash flow. The bank has indicated it will be able to reduce the company's collection float by 3 days. Given the following details should the lock box option be used
    ? Average number of payments per day in new York is 150
    ? Average value of each payment is $15,000
    ? Fixed annual lock box fee is $80,000
    ? Transactional fee for lock box use is $.50 per payment
    ? Money market Investment has a interest rate of 7.5%

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    https://brainmass.com/business/finance/rate-of-return-on-weekly-investments-lock-box-170455

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    8) A company's weekly cash position is as follows:
    ? Week 1 $24,000
    ? Week 2 $34,000
    ? Week 3 $10,000
    ? Week 4 $15,000
    The annual interest rate for investments is 12% what return can the company earn on these weekly investments

    Annual interest= 12%
    Number of weeks in a year= 52
    Therefore weekly ...

    Solution Summary

    The solution calculates rate of return on weekly investments and decides whether a lock bos system should be used.

    $2.19

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