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Your firm has an average receipt size of $ 1 3 5 . A bank has approached you concerning a lockbox service that will decrease
Your firm has an average receipt size of $ A bank has approached you concerning a lockbox service that will decrease your total collection time by one day. You typically receive checks per day. The daily interest rate is percent. The bank charges a lockbox fee of $ per day.
a What is the NPV of accepting the lockbox agreement? Do not round intermediate calculations and round your answer to decimal places, eg
b What would the net annual savings be if the service were adopted? Use days a year. Do not round intermediate calculations and round your answer to decimal places, eg
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