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NEW QUESTION: 1
A firm has daily cash receipts of $100,000. A bank has offered to reduce the collection time on the firm's
deposits by two days for a monthly fee of $500. If money market rates are expected to average 6 percent
during the year, the net annual benefit (loss) from having this service is:
A. $(6,000)
B. $3,000
C. $12,000
D. $6,000
Answer: D
Explanation:
Choice "c" is correct. $6,000 net annual benefit from using a lockbox system.


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