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Your firm has an average receipt size of $80. A bank has approached you concerning a lockbox service that will decrease your total collection time
Your firm has an average receipt size of $80. A bank has approached you concerning a lockbox service that will decrease your total collection time by 2 days. You typically receive 8,700 checks per day. The daily interest rate is 0.017 percent. If the bank charges a fee of $210 per day, what is the NPV of the lockbox project? NPV What would the net annual savings be if the service were adopted? Net annual savings
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