Lock Box, Cash Conversion Cycle, Interest rate
1. What are the expected annual savings form a lock-box system that collects 300 checks per day averaging $800 each, and reduces mailing and processing times by 3.0 and 1.5 days respectively, if the annual interest rate is 7 %? 2. What is the receivables period for a firm with annual sales of $100 million, $8.4 million in ave