Answer:
Daily saving (NPV) is $33
Annual saving is $12,045
Explanation:
1.What is the NPV of accepting the lockbox agreement?
The total about to be deposited in bank lockbox per day = average receipt size * number of checks per day
= $135 * 7,300 = $985,500
The daily interest to be received = $985,500 * 0.016% = $158
Daily saving (NPV) = Interest received – lockbox fee = $158 - $125 = $33
2. What would the net annual savings be if the service were adopted?
Annual saving = daily saving * 356 days = $33 * 365 = $12,045
Answer:
Specifically perform the contract
Explanation:
When a contract is made and one of the parties does not perform his own part. During a dispute the court will first ask the erring party to perform their duties in the contract.
In this scenario Terry was to supply 18 th century artifacts to Martha for the play she was directing, and Martha was ready to pay $50,000 for this. Another director needed the same artifacts and was ready to pay $60,000. Terry decided not to sell the artifacts to Martha.
Terry has breached his contract with Martha, and will now be compelled to sell the painting to Martha at $50,000.
Answer:
FV= $1,254.4
Explanation:
Giving the following information:
Initial investment= $1,000
Number fo years= 2
i= 12% compunded annually
To calculate the future value, we need to use the following formula:
FV= PV*(1+i)^n
PV= present value
FV= 1,000*(1.12^2)
FV= $1,254.4
The answer is c hoped this helped