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Company ABC as determined that a majority of its customers are located in a big metro area. Therefore, it is considering using a lockbox system
Company ABC as determined that a majority of its customers are located in a big metro area. Therefore, it is considering using a lockbox system offered by a bank located in the city center. The bank has estimated that use of the system will reduce collection time by 5 days. Average number of payments per day Average value of payment Variable lockbox fee (per transaction) Daily interest rate on money market securities 860 $700 $ 0.1 0.4% What is the NPV of the new lockbox system? Numeric Response
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