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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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The marginal cost of Alexa's Guide to Street People and Their Pets is constant at $5. Alexa sells 5,000 copies per year at $20 p
ch4aika [34]

Answer:

She must sell 7,500  copies to mantain the profits when price changes to $15.

Explanation:

  • Let's start with a definition of profit or benefit: Benefit=(Price-Cost)\times{Quantity}
  • At the beggining, she obtained a profit of $75,000: She sold 5,000 copies, and she got $20-$5=$15 dollars for each of the 5,000. units sold, which means a benefit of 15\times5,000=75,000 dollars.
  • Then, if she wants to keep the $75,000 profits when prices falls to $15, she must sell more copies:75,000=(15-5)\times{NewQuantity}. Then, the quantity she must sell to mantain the profit constant at $75,000 is New quantity=7,500.
3 0
3 years ago
Describe the steps involved in closing the books. What’s is the most important output of the accounting cycle? What would happen
yuradex [85]

The steps involved in closing the books are as follows:

Closing the Revenues

Closing the Expenses

Closing the net income

Closing the dividend and withdrawals


The most important output of the accounting cycle is the financial statement like balance sheet and Income statement. If the books were never closed, then the business would never be able to know the financial position for a particular accounting period.  


8 0
3 years ago
When the economy took a downturn and jobs were difficult to find, many people blamed immigrants. What would be a good explanatio
ioda

Realistic conflict theory would be a good explanation for rising prejudice in this situation.

<h3>What do you mean by Realistic conflict theory ?</h3>

According to the realistic conflict theory, wherever there are two or more groups vying for the same few resources, there will be conflict, false preconceptions and ideas, and prejudice towards the various groups.

Just the perception of competition will foster hostile emotions and discriminating behavior in one group. For instance, whether or not it is accurate, ethnic group A will feel resentment and hatred if it perceives that members of ethnic group B are a threat to them by "taking employment."

Learn more about realistic conflict theory here

brainly.com/question/4511475

#SPJ1

4 0
1 year ago
In two or three sentences, describe how you would use some of the budgeting tools to help manage your money.
Bas_tet [7]

Answer:

Budgeting tools provide notifications and reminders to help us keep track of our spending and savings.

Explanation:

We may use a budgeting program to keep track of how much we spend. Budgeting tools can assist us in reducing undesirable and unneeded spending. It can also help us be more disciplined with our spending and save more money. We may set up notifications or reminders to help us keep track of our spending.

5 0
2 years ago
During March, the production department of a process operations system completed and transferred to finished goods 25,000 units
djverab [1.8K]

Answer:

D. 165,000 materials; 144,000 conversion.

Explanation:

The concept of equivalent units measures the number of units in terms of percentage completion in the inputs introduced to outputs.

Calculation of  the number of equivalent units with respect to both materials and conversion respectively for March.

<u>Materials</u>

Units Completed and Transferred (135,000 × 100%) = 135,000

Units in Ending Work in Process (30,000 × 100%)     =  30,000

Total Equivalent units of Production                           = 165,000

<u>Materials</u>

Units Completed and Transferred (135,000 × 100%) = 135,000

Units in Ending Work in Process (30,000 × 30%)      =     9,000

Total Equivalent units of Production                           = 144,000

Conclusion :

The equivalent units of production are 165,000 materials; 144,000 conversion.

5 0
3 years ago
Read 2 more answers
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