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sveta [45]
2 years ago
10

ou are considering implementing a lockbox system for your firm. The system is expected to reduce the collection time by 3 days.

On an average day, your firm receives 1,370 checks with an average value of $880 each. The daily interest rate on Treasury bills is 0.01 percent. The bank charge per check would be $.25. What is the net present value of this lockbox arrangement
Business
1 answer:
Taya2010 [7]2 years ago
5 0

The net present value of this lockbox arrangement is $1,205,378.06.

Since you are considering implementing a lockbox system for your firm, and on an average day, your firm receives 1,370 checks with an average value of $ 880 each, and the daily interest rate on Treasury bills is 0.01 percent, and the bank charge per check would be $ 0.25, to determine what is the net present value of this lockbox arrangement, the following calculation must be performed:

  • ((1370 x 880) x 1.0001) - (1370 x 0.25) = X
  • 1,205,720.56 - 342.5 = X
  • 1,205,378.06 = X

Therefore, the net present value of this lockbox arrangement is $1,205,378.06.

Learn more about maths in brainly.com/question/25903947

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2 years ago
Describe the differences between a wage, a salary, and a commission.
Oksana_A [137]
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4 0
3 years ago
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Gross domestic product
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3 0
4 years ago
Sommer Corporation began the year with cash of $130,000 and land that $55,000. During the year Sommer earned service revenue of
kirza4 [7]

Answer:

How much net income (or net loss) did Sommer experience for the year?

$11000

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earning                  280000

Expenses salaries  159000

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Expenses Utilities   25000

Net Income             11000

4 0
3 years ago
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Explanation:

Calculation for How much cash will Bramble receive in November

Using this formula

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Let plug in the formula

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3 years ago
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