How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Linda_us Your Own Question

Linda_us, Finance, Accounts & Homework Tutor
Category: Homework
Satisfied Customers: 7291
Experience:  Post Graduate Diploma in Management (MBA)
Type Your Homework Question Here...
Linda_us is online now
A new question is answered every 9 seconds

Eagle Industries feels that a lockbox system can shorten its

This answer was rated:

Eagle Industries feels that a lockbox system can shorten its accounts receivable collection period by 3 days. Credit sales are $3,240,000 per year, billed on a continuous basis. The firm has other equally risky investments that earn a return of 15%. The cost of the lockbox system is $9,000 per year. (Note: Assume a 365-day year.)

a. What amount of cash will be made available for other uses under the lockbox system?

b. What net benefit (cost) will the firm realize if it adopts the lockbox system?
Should it adopt the proposed lockbox system?
Thanks for requesting me.

Please let me know your deadline.
Customer: replied 3 years ago.

Hello Linda,

This is Tony again, this is the second problem I am not understanding. I would like to have it as soon as possible. Later today or tomorrow morning would be great. I work second shift and can only study and review in the morning or early afternoon.

Thanks, Tony

I will post the solution tonight itself.
Customer: replied 3 years ago.

Again, Thank you for your expertise!


You are welcome.

You need to spend $3 to view this post. Add Funds to your account and buy credits.
Linda_us and 2 other Homework Specialists are ready to help you