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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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LenKa [72]

Answer: $74100

Explanation:

Based on the information given, the amount of cash expected to be collected in October will be calculated thus:

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Since the amount that'll be collected in October will be 50% of the credit sales. This will be:

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6 0
3 years ago
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tatiyna

Answer: change the forecast category to omitted on the duplicate opportunities

Explanation:

The sales process should be modified to ensure opportunities are not double-counted in the pipeline by changing the forecast category to omitted on the duplicate opportunities.

When this is done, the multiple opportunities for the same end customer will be curtailed and hence, there'll be accuracy with regards to the pipeline report.

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3 years ago
On December 1, 2016, Fine Dining Products borrowed $84,000 on a 12%, five-year note with annual installment payments of $16,800
kenny6666 [7]

Answer:

$16,800

Explanation:

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Calculation: 84000/5 = $16,800

3 0
3 years ago
The marketing staff wants to supply pens with attached USB drives to clients. In the past this client has been victimized by soc
Firdavs [7]

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D. The risks associated with the large capacity of USB drives and their concealable nature

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Based on the scenario that has been discussed in the question, the security administrator will instructs the marketing staff not to supply the USB pens based on the security risks that are associated with combining USB drives and cell phones on a network.

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Since the client has been victimized by social engineering attacks that led to a loss of sensitive data in the past, they'll be extra careful this time around.

4 0
3 years ago
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S_A_V [24]

Answer:

The correct word for the blank space is: Timeliness.

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Timeliness is a characteristic the Financial Statements must meet by which executives in decision-making positions could be able to read and comprehend what the information reflects on the company's well being so they can take proper action to correct the course of the company or find the way to keep it and improve it.

7 0
4 years ago
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