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Thrifty Corp

Question 32

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Thrifty Corp.is establishing a lock-box system to reduce time in the collection process.They anticipate saving two days of mail time and.75 days of processing time through the system.Six hundred payments are expected to be collected daily, at an average size of $200.The appropriate interest rate is 6 percent per year.What is the break-even charge per item that you could consider paying to a bank for providing this service?

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Number of daily items × size of each ite...

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