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Sussex Inc., a large fertilizer distributor based in Nova Scotia, is planning to use a lockbox system to speed up collections from its customers located on the West Coast. A Vancouver-area bank will provide this service for an annual fee of $15,000 plus 5 cents per transaction. The estimated reduction in collection and processing time is one day. Treasury bills are currently yielding 5% per year and assume 365 days per year.
If the average customer payment in this region is $6,200, how many customers each day, on average, are needed to make the system profitable for Sussex? (Do not round your intermediate calculations. Round the final answer to 2 decimal places.)
Number of customers per day
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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