Your firm has an average receipt size of 145 a bank has, Ask an Expert

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Your firm has an average receipt size of $145. A bank has approached you concerning a lockbox service that will decrease your total collection time by one day. You typically receive 7,100 checks per day. The daily interest rate is 0.017 percent. The bank charges a lockbox fee of $135 per day. NPV= 235382.35

What would the net annual savings be if the service were adopted?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91383425

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