What will the firm savings be from using the lockbox

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Porter Corp has just signed up for a lockbox. Management expects the lockbox to reduce the mail float by 2.3 days. The firm's sales on average are $ 41,250 a day, with the average check being$165. The Bank charges 0.39per processed check. Assume that there are 270 business days in a year and the opportunity cost of funds is 5 percent. what will the firm's savings be from using the lockbox.

Reference no: EM131533115

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