B&C Co Has an Average Receipt Size of $249

question 42

Multiple Choice

B&C Co. has an average receipt size of $249. A lockbox service should decrease the average total collection time by 1.6 days at a cost of $95 per day. The company typically receives 2,150 checks per day. The daily Treasury interest rate is .012 percent. What is the NPV of the lockbox project?

• A) $64,893
• B) $34,508
• C) $73,013
• D) $28,306
• E) $58,497