A lockbox system:
A. entails the use of a bank which is centrally located to collect payments on a
B. is designed to deposit a customer's check into the firm's bank account prior to
recording the receipt of that check to a customer's account.
C. is used to reduce the disbursement float of a firm.
D. is efficient regardless of the locations selected for lockbox destinations.
E. automatically records payments to a customer's account when the customer's check is
received at the lockbox location.
Western Beef Exporters is considering a project that has an NPV of $32,600, an IRR of
15.1 percent, and a payback period of 3.2 years. The required return is 14.5 percent and
the required payback period is 3.0 years. Which one of the following statements
correctly applies to this project?
A. The net present value indicates accept while the internal rate of return indicates
B. Payback indicates acceptance.
C. The payback decision rule could override the accept decision indicated by the net
D. The payback rule will automatically be ignored since both the net present value and
the internal rate of return indicate an accept decision.
E. The net present value decision rule is the only rule that matters when making the
Global Communications has a 7 percent, semiannual coupon bond outstanding with a
current market price of $1,023.46. The bond has a par value of $1,000 and a yield to
maturity of 6.72 percent. How many years is it until this bond matures?
A. 12.26 years
B. 12.53 years
C. 18.49 years
D. 24.37 years
E. 25.05 years