View the step-by-step solution to:

Your firm has an average receipt size of $108. A bank has approached you concerning a lockbox service that will decrease your collection time by two...

Your firm has an average receipt size of $108. A bank has approached you concerning a lockbox service that will decrease your collection time by two days. You typically receive 8,500 cheques per day. Daily interest rate is .016%. If the bank charges a fee of $225 per day, should the lockbox project be accepted. What would net annual savings be if the service was adopted?

Sign up to view the entire interaction

Top Answer

Hi Please find the solution as an attachment of... View the full answer

8403186.doc

Question:
NPV and Collection time ­ Your firm has an average receipt size of $108. A bank has approached you concerning a lockbox service that will decrease your total collection times by two...

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online