Assume the Following Facts About a Firm

Multiple Choice

Assume the following facts about a firm:
Would a lock box system that reduces check clearing time from six to three days be justified?

A) Yes, because it would save more than $1,800 annually.
B) No, because it would cost $2,100 annually.
C) Yes, because of the additional convenience of a shorter clearing time.
D) Indifferent, the cost and expense are about the same.