What is the npv of accepting the lockbox agreement

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Reference no: EM13264701

Your firm has an average receipt size of $170. A bank has 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 daily interest 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)

What would the net annual savings be if the service were adopted?

Reference no: EM13264701

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