Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Your firm has an average receipt size of $170. A bank hiss approached you concerning a lockbox service that will decrease your total collection time
Your firm has an average receipt size of $170. A bank hiss approached you concerning a lockbox service that will decrease your total collection time by one day. You typically receive 5,500 checks per day. The dailyinterest rate is 0.017 percent. The bank charges a lockbox fee of $130 per day. What is the NPV of accepting the lockbox agreement? (Round your answer to 2 decimal places. (e.g., 32.16)) NPV $ 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 final answer to 2 decimal places, (e.g., 32.16)) Net annual savings $ Your firm has an average receipt size of $170. A bank hiss approached you concerning a lockbox service that will decrease your total collection time by one day. You typically receive 5,500 checks per day. The dailyinterest rate is 0.017 percent. The bank charges a lockbox fee of $130 per day. What is the NPV of accepting the lockbox agreement? (Round your answer to 2 decimal places. (e.g., 32.16)) NPV $ 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 final answer to 2 decimal places, (e.g., 32.16)) Net annual savings $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started