Question
Your firm has an average receipt size of $90. A bank has approached you concerning a lockbox service that will decrease your total collection time
Your firm has an average receipt size of $90. A bank has approached you concerning a lockbox service that will decrease your total collection time by 1 day\. You typically receive 9,400 checks per day. The daily interest rate is 0.012 percent. Required: (a) If the bank charges a fee of $180 per day, calculate the NPV of the lockbox project. (Do not include the dollar sign ($). A negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16)) NPV $ (b) Should the lockbox project be accepted? (Click to select) (c) What would the net annual savings be if the service were adopted? (Do not include the dollar sign ($). A negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16)) Annual net savings $
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