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Gouda Tuinproducten BV has just signed up for a lock box Management expects the lock box to reduce the mail float by 21 days Gouda Tuinproductens remittances average 37 000 a day with the average

Gouda Tuinproducten BV has just signed up for a lock box. Management expects the 
lock box to reduce the mail float by 2.1 days. Gouda Tuinproducten’s remittances 
average €37 000 a day, with the average cheque being €125. The bank charges €0.37 
per processed cheque. Assume that there are 270 business days in a year. What will 
the firm’s savings be from using the lock box if the opportunity cost of those funds is 
12 per cent?

Apr 16 2021 View more View Less

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