What is the npv of accepting the system

Reference no: EM13281066

Cookie Cutters Corporation has an agreement with Floyd Bank whereby the bank handles $4.6 million in collections a day and requires a $330,000 compensating balance. Cookie Cutters is contemplating canceling the agreement and dividing its eastern region so that two other banks will handle its business. Banks A and B will each handle $2.3 million of collections a day, and each requires a compensating balance of $180,000. Cookie Cutters' financial management expects that collections will be accelerated by one day if the eastern region is divided.
(Show work. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)

What is the NPV of accepting the system?

Assume that the T-bill rate is 2.5 percent annually. What will be the annual net savings?

Reference no: EM13281066

Questions Cloud

Why is not stock based compensation sufficient : How can accounting bonuses be an effective means to align managers' incentives woth shareholders?

What is the weighted average cost of capital for project : The company estimates is after-tax cost of debt to be 7%, its cost of preferred stock to be 9%, the cost of retained earnings to be 14%, and the cost of new common stock to be 17%. What is the weighted average cost of capital for this project.

Find the conditional probability that they come within edges : a laser weapon is fired many times at a circular target that is 1m in diameter and it is found that one-tenth of the shots miss the target entirely. for those shots that miss the target completely

Medieval thinkers and reformation leaders : Describe the difference in worldview between the medieval thinkers and Reformation leaders.

What is the npv of accepting the system : Assume that the T-bill rate is 2.5 percent annually. What will be the annual net savings?

Define the names of the compounds : Write the names of the following compounds

Determine the output expressions with input conditions : For 16-QAM modulator, change the reference oscillator to cosωct and determine the output expressions for the following I, I', Q, Q' with input conditions: 0000, 1111, 1010, 0101.

What is the hubbles total energy : The Hubble Space Telescope orbits the Earth at an altitude of approximately 612 km. Its mass is 11,100 kg, What is the Hubble's total energy

Define cash conversion cycle : Define cash conversion cycle (CCC) and explain why, holding other things constant, a firm's profitability would increase if it lowered its CCC.

User Account

All Pages