lockbox system
Currently, it takes six days for Apsoft Corporation to receive, process, and deposit its customers’ payments. If it sets up a lockbox collection system, Apsoft estimates collection float would be reduced to two days. Apsoft receives an average of $125,000 in payments per day. If Apsoft has an opportunity cost of 12 percent, what is the maximum monthly charge it should pay for the lockbox system?
lockbox system