Your Firm Has an Average Receipt Size of $60

question 82

Multiple Choice

Your firm has an average receipt size of $60.A bank has approached you concerning a lockbox service that will decrease your total collection time by 1 day.You typically receive 25,000 checks per day.The daily interest rate is 0.016 percent.What is the NPV of the lockbox project if the bank charges a fee of $210 per day?

• A)$187,500
• B)$367,500
• C)$903,350
• D)$1,412,500
• E)$1,680,000

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