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Your firm has an average receipt size of $125. A bank has approached you concerning a lockbox service that will decrease your local collection time

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Your firm has an average receipt size of $125. A bank has approached you concerning a lockbox service that will decrease your local collection time by two days. You typically receive 5,800 checks per day. The daily interest rate is.017 percent. The bank charges a lockbox fee of $170 per day. What is the NPV of accepting the lockbox agreement? (Do not round intermediate calculations and round your answer to 2 decimal place, e.g., 32.16.) What would the net annual savings be if the service were adopted? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places. e.g., 32.16.) Your firm has an average receipt size of $125. A bank has approached you concerning a lockbox service that will decrease your local collection time by two days. You typically receive 5,800 checks per day. The daily interest rate is.017 percent. The bank charges a lockbox fee of $170 per day. What is the NPV of accepting the lockbox agreement? (Do not round intermediate calculations and round your answer to 2 decimal place, e.g., 32.16.) What would the net annual savings be if the service were adopted? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places. e.g., 32.16.)

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