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Mt. Brydges Submarine Manufacturing (MSM) is investigating a lockbox system to reduce its collection time. It has determined the following: Average number of payments per
Mt. Brydges Submarine Manufacturing (MSM) is investigating a lockbox system to reduce its collection time. It has determined the following: Average number of payments per day 435. Average vale of payment is $1,025. Variable lockbox fee (per transaction) $0.30. Daily interest on money market securities 0.068%. The total collection time will be reduced by three days if the lockbox system is adopted. What is the NPV of adopting the lockbox system?
A.$2,633.82 | |
B.$1,145,713 | |
C.$1,335,705.88 | |
D.zero |
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