Pay each month for the lockbox system

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Reference no: EM132061607

With its current system, it takes seven days from the time customers mail payments until The Wood Shed deposits them. A lockbox system would reduce this collection float by three days. If the Wood Shed receives an average of $3,000 in payments per day and its opportunity cost is 12%, how much should The Wood Shed be willing to pay each month for the lockbox system?

Reference no: EM132061607

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