Quiz Ch 15 – T/F Evaluation of Lockbox System Investment

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition

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True or false: If a firm collects $250,000 in daily checks with a 4-day cash conversion time and can reduce it to 2 1/2 days using a $25,000 annual lockbox system, it would be a wise investment opportunity, considering the option to earn a 6% after-tax return on excess cash.

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