You are an analyst in the Treasurer's department with Wilson Inc , a multinational corporation with its primary bank account in the U S and 3 other secondary accounts at other banks in the U S You have been tasked with answering questions for the head of the Department on a few key concerns Below are the numbers you requested to help in answering the questions U S BANKING INFORMATION Monthly average ledger balance at U S Bank $3,500,000 00 Monthly average deposit float $750,000 00 Monthly Service Charge US Bank $1,000 00 Earnings Credit Rate US Bank 0 007 Required Reserves Ratio 0 03 30 365 0 0822 Wire Transfer Cost $15 ACH cost $0 50 INFO ON COLLECTIONS FROM CUSTOMERS Number of remittances per month 9000 Average face value of monthly remittances $25,000 00 Mail float in house processing 2 Processing float in house processing 2 Availability float in house processing 2 Days float 6 Per check Variable cost of in house Processing 0 4 Fixed Cost of in house check processing $2,500 00 Days float with lockbox alternative 4 Per check variable cost of lockbox alternative 0 8 Fixed Cost of lockbox alternative $3,000 00 INFO ON DISBURSEMENTS TO SUPPLIERS Disbursements per year 3500 Check cost per check $1 50 ACH costs per check $0 50 upfront cost to switch fully to ACH system $25,000 DAILY NET CASH FLOWS (10 days into November) Day Net Cash Flow 1 18000 2 20000 3 23000 4 25000 5 26000 6 35000 7 32000 8 25000 9 26000 10 27000 MONTHLY SALES FORECASTS INFORMATION October sales $500,000 00 of sales collected in month of sale 0 7 of sales collected in following month 0 3 of sales in Cost of goods sold 0 75 Monthly lease payment $125,000 00 Cash position end of October $120,000 00 Target cash balance $80,000 00 Sales forecast for November $450,000 00 Sales forecast for December $350,000 00 MISCELLANEOUS INFO Company's Discount Rate 12 What is the NPV to Wilson's if it switches to a fully ACH disbursement system Assume that discount rate is 12 a $24,522 b $36,917 c $57,850 d $4,167 4 points What is NPV if the firm had as many as 5000 disbursements to process with the ACH disbursement system Assume that discount rate is 12 a $16,667 b $57,635 c $21,290 d $70,650 a $27,650 b $26,500 c $15,000 d $30,150 4 points QUESTION 20 Calculate the moving average forecast for November's Day 11 net cash flow using a 5 day window a $10,500 b $29,000 c $27,000 d $21,670 4 points QUESTION 21 What is the 10 day average of daily net cash flows a $24,500 b $25,700 c $20,100 d $21,850 4 points QUESTION 22 What is the median of the 5 daily net cash flow amounts a $25,500 b $20,000 c $25,000 d $18,000 4 points QUESTION 23 How does the forecast of December's ending cash position differ from November's a It's $7500 lower b It's $115,000 lower c It's $800 higher d There's no difference they go together, please help

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You are an analyst in the Treasurer's department with Wilson Inc., a multinational corporation with its primary bank account in the U.S. and 3 other

You are an analyst in the Treasurer's department with Wilson Inc., a multinational corporation with its primary bank account in the U.S. and 3 other secondary accounts at other banks in the U.S. You have been tasked with answering questions for the head of the Department on a few key concerns. Below are the numbers you requested to help in answering the questions.

U.S. BANKING INFORMATION
Monthly average ledger balance at U.S. Bank	$3,500,000.00
Monthly average deposit float	$750,000.00
Monthly Service Charge_US Bank	$1,000.00
Earnings Credit Rate_ US Bank	0.007
Required Reserves Ratio	0.03
30/365	0.0822
Wire Transfer Cost	$15
ACH cost	$0.50

INFO ON COLLECTIONS FROM CUSTOMERS
Number of remittances per month	9000
Average face value of monthly remittances	$25,000.00
Mail float - in house processing	2
Processing float - in house processing	2
Availability float - in house processing	2
Days float	6
Per check Variable cost of in-house Processing	0.4
Fixed Cost of in-house check processing	$2,500.00
Days float with lockbox alternative	4
Per check variable cost of lockbox alternative	0.8
Fixed Cost of lockbox alternative	$3,000.00
INFO ON DISBURSEMENTS TO SUPPLIERS
Disbursements per year	3500
Check cost_ per check	$1.50
ACH costs_ per check	$0.50
upfront cost to switch fully to ACH system	$25,000
DAILY NET CASH FLOWS (10 days into November)
Day	Net Cash Flow
1	18000
2	20000
3	23000
4	25000
5	26000
6	35000
7	32000
8	25000
9	26000
10	27000
MONTHLY SALES FORECASTS INFORMATION
October sales	$500,000.00
% of sales collected in month of sale	0.7
% of sales collected in following month	0.3
% of sales in Cost of goods sold	0.75
Monthly lease payment	$125,000.00
Cash position end of October	$120,000.00
Target cash balance	$80,000.00
Sales forecast for November	$450,000.00
Sales forecast for December	$350,000.00
MISCELLANEOUS INFO
Company's Discount Rate	12%

What is the NPV to Wilson's if it switches to a fully ACH disbursement system? [Assume that discount rate is 12%.] a. $24,522 b. $36,917 c. $57,850 d. $4,167 4 points

What is NPV if the firm had as many as 5000 disbursements to process with the ACH disbursement system? [Assume that discount rate is 12%.] a. $16,667 b. $57,635 c. -$21,290 d. -$70,650

a.
$27,650

b.
$26,500

c.
$15,000

d.
$30,150

4 points

QUESTION 20

Calculate the moving average forecast for November's Day 11 net cash flow using a 5 day window

a.
$10,500

b.
$29,000

c.
$27,000

d.
$21,670

4 points

QUESTION 21

What is the 10-day average of daily net cash flows?

a.
$24,500

b.
$25,700

c.
$20,100

d.
$21,850

4 points

QUESTION 22

What is the median of the 5 daily net cash flow amounts?

a.
$25,500

b.
$20,000

c.
$25,000

d.
$18,000

4 points

QUESTION 23

How does the forecast of December's ending cash position differ from November's?

a.
It's $7500 lower

b.
It's $115,000 lower

c.
It's $800 higher

d.
There's no difference.