Business, 22.04.2020 17:29 saharaapollonio

Your firm has an average receipt size of $155. A bank has approached you concerning a lockbox service that will decrease your total collection time by one day. You typically receive 6,700 checks per day. The daily interest rate is 0.016 percent. The bank charges a lockbox fee of $120 per day.

a. What is the NPV of accepting the lockbox agreement? (Round your answer to 2 decimal places. (e. g., 32.16))

NPV $

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

(Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places. (e. g., 32.16))

Net annual savings $

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 19:20

Which of the following areas provides residents with close access to high-paying jobs and cultural attractions? a. the suburbs b. exurbs c. rural areas d. the city 2b2t

Answers: 3

Answer

Business, 21.06.2019 19:30

How does knowing about supply and demand

Answers: 1

Answer

Business, 21.06.2019 20:20

The 2016 financial statements of the new york times company reveal average shareholders’ equity attributable to controlling interest of $837,283 thousand, net operating profit after tax of $48,032 thousand, net income attributable to the new york times company of $29,068 thousand, and average net operating assets of $354,414 thousand. the company's return on net operating assets (rnoa) for the year is: select one: a. 3.5% b. 6.9% c. 13.6% d. 18.7% e. there is not enough information to calculate the ratio.

Answers: 1

Answer

Business, 22.06.2019 11:40

During 2016, nike inc., reported net income of $3,760 million. the company declared dividends of $1,022 million. the closing entry for dividends would include which of the following? select one: a. credit cash for $1,022 million b. credit dividends for $1,022 million c. debit net income for $1,022 million d. credit retained earnings for $1,022 million e. debit dividends for $1,022 million

Answers: 1

Answer

You know the right answer?

Your firm has an average receipt size of $155. A bank has approached you concerning a lockbox servic...

Questions