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Flowers Incorporated is investigating a lockbox system to reduce its collection time. The firm receives...

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Accounting

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Flowers Incorporated is investigating a lockbox system to reduce its collection time. The firm receives an average of 400 payments per day with an average value of $3,900. The bank will change a lockbox fee of $.80 per transaction and the applicable daily interest rate is .03 percent. What is the NPV of adopting the lockbox system if the system reduces collection time by two days? OA) $2,600,000 OB) $2,695,000 OC) $2,745,000 OD) $2,053,333 O E) $2,675,000

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