Your firm has an average receipt size of 125 a bank has, Ask an Expert

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Your firm has an average receipt size of $125. A bank has approached you concerning a lockbox service that will decrease your total collection time by two days. You typically receive 5,800 checks per day. The daily interest rate is .017 percent. The bank charges a lockbox fee of $170 per day. What is the NPV of accepting the lockbox agreement?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92361062

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