Your firm has an average receipt size of 145 a bank has


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. If the NPV of accepting the lockbox agreement is 235382.35

What would the net annual savings be if the service were adopted? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Net annual savings          $

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Your firm has an average receipt size of 145 a bank has
Reference No:- TGS01093698

Expected delivery within 24 Hours