Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. (a) what is the net present value (npv) of each of

(a) What is the Net Present Value (NPV) of each of the new lockbox system...

60.1K

Verified Solution

Question

Accounting

image

(a) What is the Net Present Value (NPV) of each of the new lockbox system proposals (including the annual fixed charge)? (Round to the nearest whole dollar)

(b) How many average payments per day are needed to make each of the lockbox systems break-even?

(c) Which is the Preferred Lockbox System for Global Manufacturing, Inc.? Wells Fargo or PNC Bank
(d) How much of a reduction in accounts receivable should Global expect from the Preferred Lockbox System if implemented in 2021? (Round to the nearest whole dollar)
PNC Bank 3.02% $4,578 DATA INPUTS Wells Fargo Rate on money market investments 3.02% Average Customer payment $4,578 Average number of payments per day 51 Annual fee $8,500 Cost per transaction $0.54 Reduction in collection time 2 51 $17,850 $0.35

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students