What would the net annual savings be

Reference no: EM13265535

Your firm has an average receipt size of $120. A bank has approached you concerning a lockbox service that will decrease your total collection time by two days. You typically receive 6,800 checks per day. The daily interest rate is 0.017 percent. The bank charges a lockbox fee of $170 per day.

What is the NPV of accepting the lockbox agreement?

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

Reference no: EM13265535

Questions Cloud

What is the gain of an ideal amplifier connected to drive : A power amplifier employs an output stage whose gain varies from 2 to 12 for various reasons. What is the gain of an ideal (non varying) amplifier connected to drive It so that an overall gain with feedback of 100 ± 5% V/V can be achieved

Explain what happen to the density of liquid water : Describe what happen to the density of liquid water when its temperature is increased and/or decreased. properly cite your reference source(s) for this information

Calculate the terminal value using the multiple method : Free cash flow in year 5 is expected to be $145 million. MiCasa, S.A. is expected to be sold at its terminal value. Calculate the terminal value using the multiple method.

Negative message effectively : when you write a negative message what are your objectives? What are some strategies you can use to write the negative message effectively?

What would the net annual savings be : What is the NPV of accepting the lockbox agreement?

What are the requirements if af must be held : A power amplifier employs an output stage whose gam vanes from 2 to 12 for various reasons. What is the gain of an ideal (non varying) amplIfier connected to drive it so that an overall gain with feedback of 100 ± 5% V/V can be achieved

What fraction of the water boils away : A 45cm3 block of iron is removed from an 800?Cfurnace and immediately dropped into 200 mL of 20?C water. What fraction of the water boils away

Economic and social development of akhenaten dynastic reign : Describe the political, economic and social development of Akhenaten dynastic reign.

Obtain the amplitude of the motion : The position of an object connected to a spring varies with time according to the expression x = (4.8 cm) sin(9.3 ?t). Find the amplitude of the motion

User Account

All Pages