Paper Submarine Manufacturing is investigating a lockbox system to reduce its collection time. It has determined...

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Finance

Paper Submarine Manufacturing is investigating a lockbox systemto reduce its collection time. It has determined the following:


  Average number of payments per day 405
  Average value of payment $ 995
  Variable lockbox fee (per transaction) $ .30
  Daily interest rate on money market securities .068 %

The totalcollection time will be reduced by three days if the lockbox systemis adopted.

a. What is thePV of adopting the system? (Do not round intermediatecalculations and round your answer to the nearest whole number,e.g., 32.)
b. What is the NPVof adopting the system? (Do not round intermediatecalculations and round your answer to the nearest whole number,e.g., 32.)
c. What is the netcash flow per day from adopting the lockbox system? Per check?(Do not round intermediate calculations and round youranswers to 2 decimal places, e.g., 32.16.)

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Paper Submarine Manufacturing is investigating a lockbox systemto reduce its collection time. It has determined the following: Average number of payments per day405 Average value of payment$995 Variable lockbox fee (per transaction)$.30 Daily interest rate on money market securities.068% The totalcollection time will be reduced by three days if the lockbox systemis adopted. a.What is thePV of adopting the system? (Do not round intermediatecalculations and round your answer to the nearest whole number,e.g., 32.)b.What is the NPVof adopting the system? (Do not round intermediatecalculations and round your answer to the nearest whole number,e.g., 32.)c.What is the netcash flow per day from adopting the lockbox system? Per check?(Do not round intermediate calculations and round youranswers to 2 decimal places, e.g., 32.16.)


Average number of payments per day		405
Average value of payment	$	995
Variable lockbox fee (per transaction)	$	.30
Daily interest rate on money market securities		.068	%

a.	What is thePV of adopting the system? (Do not round intermediatecalculations and round your answer to the nearest whole number,e.g., 32.)
b.	What is the NPVof adopting the system? (Do not round intermediatecalculations and round your answer to the nearest whole number,e.g., 32.)
c.	What is the netcash flow per day from adopting the lockbox system? Per check?(Do not round intermediate calculations and round youranswers to 2 decimal places, e.g., 32.16.)