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A company is considering implementing a lockbox system. If the system is implemented, the collection time will be reduced by 2 days. The average number
A company is considering implementing a lockbox system. If the system is implemented, the collection time will be reduced by 2 days. The average number of payments per day is 1,055, with an average payment value of $893. The lockbox charges a fee per transaction. (That is, the more the number of transactions, the more the total fees.) Assume the company can earn a 3.88% EAR on its cash balances and that there are 365 days in a year. What is the maximum transaction fee the company can pay and still be able to adopt the project with a positive NPV? $0.182 O $0.186 $0.191 $0.196 $0.200 Sales for year 2 of a new project are expected to increase by 16.50%. For every dollar increase in sales, current assets are expected to increase by 25.20% and current liabilities by 8.40%. For year 2, what is the absolute value of the change in cash as a result of the changes in current assets and current liabilities if the sales in year 1 are $1,000? O $27.72 $28.41 O $29.11 $29.80 O $30.49 A company is considering implementing a lockbox system. If the system is implemented, the collection time will be reduced by 2 days. The average number of payments per day is 1,055, with an average payment value of $893. The lockbox charges a fee per transaction. (That is, the more the number of transactions, the more the total fees.) Assume the company can earn a 3.88% EAR on its cash balances and that there are 365 days in a year. What is the maximum transaction fee the company can pay and still be able to adopt the project with a positive NPV? $0.182 O $0.186 $0.191 $0.196 $0.200 Sales for year 2 of a new project are expected to increase by 16.50%. For every dollar increase in sales, current assets are expected to increase by 25.20% and current liabilities by 8.40%. For year 2, what is the absolute value of the change in cash as a result of the changes in current assets and current liabilities if the sales in year 1 are $1,000? O $27.72 $28.41 O $29.11 $29.80 O $30.49
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