What would the net annual savings be if service were adopted

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Reference no: EM13929712

Your firm has an average receipt size of $145. A bank has approached you concerning a lockbox service that will decrease your total collection time by one day. You typically receive 6,100 checks per day. The daily interest rate is .017 percent. The bank charges a lockbox fee of $115 per day.

What is the NPV of accepting the lockbox agreement? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

NPV $

What would the net annual savings be if the service were adopted? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Net annual savings

Need help finding the net annual savings. i have sent this question in twice already seaking help and have yet to get a response with the right answer.

Reference no: EM13929712

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