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PROBLEMS . Use Equation 10.1 to determine which of the following will lead to an increase in the NPV when switching from checks to ACH

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PROBLEMS . Use Equation 10.1 to determine which of the following will lead to an increase in the NPV when switching from checks to ACH a. A decreased number of disbursements (assume that cost savings exist) b. An increase in the cost of processing a check relative to an ACH Question 3 with show work please ACH. Assume that the frm will remain a going concern in perpetuity Upon further review, Joe determines that, in past years, the firm has had as few as 500 disbursements and as many as 10,000 disbursements. Calculate and interpret the NPVs for both scenarios. 3. Now, Joe wants to examine the sensitivity of the NPV with respect to the model's variables a. Cash Disbursement Systems30 r of payments that results in an NPV of So. us on opportunity cost. Specifically, he would like to know the maxi- at which the decision to switch is stll manageable. Accordingly cost that results in an NPV of So. Use the base assumption of Now Joe wants to focus opport solve for the opportunity 2,000 disbursements. that PROBLEMS . Use Equation 10.1 to determine which of the following will lead to an increase in the NPV when switching from checks to ACH a. A decreased number of disbursements (assume that cost savings exist) b. An increase in the cost of processing a check relative to an ACH Question 3 with show work please ACH. Assume that the frm will remain a going concern in perpetuity Upon further review, Joe determines that, in past years, the firm has had as few as 500 disbursements and as many as 10,000 disbursements. Calculate and interpret the NPVs for both scenarios. 3. Now, Joe wants to examine the sensitivity of the NPV with respect to the model's variables a. Cash Disbursement Systems30 r of payments that results in an NPV of So. us on opportunity cost. Specifically, he would like to know the maxi- at which the decision to switch is stll manageable. Accordingly cost that results in an NPV of So. Use the base assumption of Now Joe wants to focus opport solve for the opportunity 2,000 disbursements. that

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