Your firm has an average receipt size of $90. A bank has approached you concerning a lockbox service that will decrease your total collection time by 2 days. You typically receive 9,100 checks per day. The daily interest rate is 0.019 percent. If the bank charges a fee of $200 per day, what is the NPV of the lockbox project? NPV____ What would the net annual savings be if the service were adopted? Net annual savings___

Your firm has an average receipt size of $90. A bank has approached you concerning a lockbox service that will decrease your total collection time by 2 days. You typically receive 9,100 checks per day. The daily interest rate is 0.019 percent. If the bank charges a fee of $200 per day, what is the NPV of the lockbox project? NPV__ What would the net annual savings be if the service were adopted? Net annual savings_

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PA: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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Your firm has an average receipt size of $90. A bank has approached you concerning a lockbox service that will decrease your total collection time by 2 days. You typically receive 9,100 checks per day. The daily interest rate is 0.019 percent.
If the bank charges a fee of $200 per day, what is the NPV of the lockbox project?
NPV____
What would the net annual savings be if the service were adopted?
Net annual savings___

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Your firm has an average receipt size of $90. A bank has approached you concerning a lockbox service that will decrease your total collection time by 2 days. You typically receive 9,100 checks per day. The daily interest rate is 0.019 percent. If the bank charges a fee of $200 per day, what is the NPV of the lockbox project? NPV What would the net annual savings be if the service were adopted? Net annual savings
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