Zimmer Inc. typically receives 850 checks everyday and the average size of check is $700. The company is nowconsidering using a lockbox system. The lockbox system costs with $0.20 per check. It can reduce the collection time bythree (3) days. What is the NPV of the new lockbox system? Assuming the daily interest rate is 0.035%.Ⓒ$109,286$1,784,830$1.299.286

Number of checks received every day$850Average size of checks$700Cost per check$0.20Collection time…

Zimmer Inc. typically receives 850 checks everyday and the average size of check is $700. The company is now considering using a lockbox system. The lockbox system costs with $0,20 per check. If can reduce the collection time by three (3) days. What is the NPV of the new lockbox system? Assuming the daily interest rate is 0.035%. $109.286 $1,784,830 $1.299.286

Zimmer Inc. typically receives 850 checks everyday and the average size of check is $700. The company is now considering using a lockbox system. The lockbox system costs with $0,20 per check. If can reduce the collection time by three (3) days. What is the NPV of the new lockbox system? Assuming the daily interest rate is 0.035%. $109.286 $1,784,830 $1.299.286

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Kindly show me the solution, thanks! ABC Corporation was approached by bank. The latter promised that it can speed up the check clearing process to 2 days for a monthly fee of P500. ABC currently deposits 30 check daily with an average value of P2,000. The current clearing process takes 6 days. ABC can earn 6% on money marketable securities. How much is the net advantage or (disadvantage) if ABC accepts the bank's offer?
Helpme please.
You are looking for a bank in which to open a checking account for your new part-time business. You estimate that in the first year, you will be writing 30 checks per month and will make three debit transactions per month. Your average daily balance is estimated to be $900 for the first six months and $2,400 for the next six months. Use the following information to solve the problem. Bank Monthly Fees and Conditions Bank 1 $16.00 with $1,000 min. daily balance-or-$25.00 under $1,000 min. daily balance Bank 2 $4.50 plus $0.40 per check over 10 checks monthly$1.00 per debit transaction Bank 3 $5 plus $0.25 per check$2.00 per debit transaction Bank 4 $8 plus $0.15 per check$1.50 per debit transaction (a) Calculate the cost (in $) of doing business with each bank for a year. Bank 1 Bank 2 Bank 3 Bank 4 (b) Which bank should you choose for your checking account? Bank 1 Bank 2 Bank 3 Bank 4
2
Vakifbank has recently sent me an SMS message telling that their monthly interest rate for unpaid credit card balances is increased to 1.78303%. Which one of the following value is closest to the effective interest rate per year? Select one: a. % 20.34908 b. % 11.18655 c. % 25.52340 d. % 19.02321 e. % 23.62450
Consider two local banks. Bank A has 100 loans outstanding, each for $1.3 million, that it expects will be repaid today. Each loan has a 3% probability of default, in which case the bank is not repaid anything. The chance of default is independent across all the loans. Bank B has only one loan of $130 million outstanding, which it also expects will be repaid today. It also has a 3% probability of not being repaid. Calculate the following: a. The expected overall payoff of each bank. b. The standard deviation of the overall payoff of each bank. a. The expected overall payoff of each bank. The expected overall payoff of Bank A is $☐ million. (Round to two decimal places.)
Please correct answer and don't use hand rating
It is the first day of the year and you plan to make a total of 5 deposits of $ 4, 000 each, one every 6 months with the first payment being made today. The bank pays a nominal interest rate of 15% but uses semiannual compounding. How much your account with the bank be if you leave the money in the bank to be withdrawn all in 12 years from today? Round to the nearest $0.01 but do not use the $ sign. DO NOT USE commas to separate thousands. For example if you obtain $1, 432.728 then enter 1433.73; if you obtain $432 then enter 432.00
You just paid $557 for a security that claims it will pay you $1,551 in 6 years. What is your annual rate of return? SET YOUR CALCULATOR TO 4 DECIMAL PLACES AND ROUND TO 2 DECIMAL PLACES AT THE END. DO NOT ENTER THE % SIGN. IF YOUR ANSWER IS 7.7021%, FOR EXAMPLE, ENTER 7.70.
Economic
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Click to see additional instructions Today, you start putting $200 into the bank every other month (bimonthly) for the next 10 years. The account pays annual interest of 3.5%. A month after your last deposit, rounded to the nearest dollar, you will have $ account. [Do not use commas or spaces in your numerical answer.] 14360.34 in the

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