How much is the one-time benefit from the proposal

Assignment Help Accounting Basics

Reference no: EM132676758

The company you work for is evaluating a proposal by your bank for services to reduce float time. Your company current float time is 3 days. On average the checks processed per day is 1,000 and the average value of each check is $400. The opportunity cost per day is .01%. The bank proposes 4 lockboxes in strategic locations. The fee for the service is composed of two parts, the per check fee processed and the end of day wire transfer to your primary bank. The per check fee is $0.13 and end of day transfer fee is $25.

Problem A. How much is the one-time benefit from this proposal?

Problem B. How much is the present value of the bank fees?

Problem C. How much is the net present value of the proposal?

Problem D. If the wire transfer fee were $30 how much would the NPV for the proposal be?

Reference no: EM132676758

Questions Cloud

What expected from the purchasing department : If we do have the transfer pricing a full standard cost between the purchasing department and one of the chain what we expected from the purchasing department?

What approach is used to test the hypothesis in the study : What approach is used to test the hypothesis in this study? List the independent variable(s) in the study. What data collection method(s) were used in the study

How do prepare t-accounts to show the flow of costs : Sunset Products manufactures skateboards. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.

What you will need to do in order to make the change : After you select what you are planning on improving, the next step is to identify exactly what you will need to do in order to make this change really happen.

How much is the one-time benefit from the proposal : If the wire transfer fee were $30 how much would the NPV for the proposal be? How much is the net present value of the proposal?

Purpose of community development : Community Development is to build strong communities based on equality, justice and mutual respect by enabling ordinary people to take part in the issue

How can critical thinking within the nursing process be used : How can critical thinking within the nursing process be used to guide the decision making process in the community environment?

Determine number board feet of lumber for towson company : 25% of the next month's production needs. Use this information to determine number board feet of lumber that Towson Company should buy in June

Will the study solve a problem relevant to nursing : A research critique demonstrates your ability to critically read an investigative study. For this assignment, choose a research article related to nursing.

User Account

All Pages