Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. your firm has an average receipt size of $175. a b

Your firm has an average receipt size of $175. A bank has approached you concerning...

50.1K

Verified Solution

Question

Finance

image
Your firm has an average receipt size of $175. A bank has approached you concerning a lockbox service that will decrease your total collection time by one day. You typically receive 5,900 checks per day. The daily interest rate is .016 percent. The bank charges a lockbox fee of $125 per day. What is the NPV of accepting the lockbox agreement? $210,000 $225,227 $240.400 $245,500 $251,250

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

Civil Engineering
1.2K views

. Make a presentation to show what/how energy conservation measures can be used for lighting controls...

Programming
1.2K views

The devices designed for the purpose of addressing security in the network generate a number of...

Psychology
1.2K views

Question: How does this conflict with what a behaviorist might say? Provide an example that supports each...

Basic Math
1.2K views

Goldi s Pizza palace is known throught the city .The small baby Bear pizza has a...

Advance Math
1.2K views

A) Suppose a group G has order 35 and acts on a set S consisting of...

Accounting
1.2K views

Bonita Corp. has 150,240 shares of common stock outstanding. In 2017, the company reports income from...

Physics
1.2K views

23 Assertion A A point charge is lying at the centre of a cube of...

Physics
1.2K views

59 In the first stage of a two stage Carnot engine energy Q is absorbed...

Accounting
1.2K views

A depreciation schedule for semi-trucks of Martinez Manufacturing Company was requested...

Accounting
1.2K views

pls help pls [The following information applies to the...

Accounting
1.2K views

Life, Inc., experienced the following events in 2016, its first year of operation: 1. Performed...

Finance
1.2K views

Hello i need help about this exercise especially for question a, b, c and d...