New payment terms are equivalent to existing payment terms

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Reference no: EM131328279

1. Which of the following will increase the NPV of switching from check to ACH disbursements?

a. Increase in the discount rate

b. Increase in the cost of technology required to implement the switch

c. Increase in the cost of each check

d. Increase in the cost of each ACH

2. Which of the following refers to the disbursement philosophy that involves the use of present value techniques to determine whether new payment terms are equivalent to existing payment terms?

a. Disbursement policy

b. Collection policy

c. Float neutrality

d. Comprehensive payables

Reference no: EM131328279

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