Your firm has an average receipt size of $145. A bank has approached you concerning a lockbox
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Your firm has an average receipt size of $145. A bank has approached you concerning a lockbox service that will decrease your total collection time by two days. You typically receive 5,600 checks per day. The daily interest rate is .016 percent. If the bank charges a fee of $175 per day, should the lockbox project be accepted? What would the net annual savings be if the service were adopted?
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Given data Average receipt 145 Decreased collection time 2 Che...View the full answer
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861704
11th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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