Mountaintop Inns,a Kentucky Company,has Determined That a Majority of Its

question 2

Multiple Choice

Mountaintop Inns,a Kentucky company,has determined that a majority of its customers are located in the Pennsylvania area.It therefore is considering using a lockbox system offered by a bank located in Pittsburgh,Pennsylvania.The bank has estimated that use of the system will reduce collection time by one day.In addition to the variable charge shown below,there is also a fixed charge of $4,320 per year for the lockbox system.Assume a year has 365 days.What is the NPV of the lockbox system given the following information? $$\begin{array} { l l } \text { Average number of payments per day } & 750 \\\text { Average value of payment } & \$ 1,800 \\\text { Variable lockbox fee (per transaction) } & \$ 0.30 \\\text { Annual interest rate on money market securities } & 6.0 \%\end{array}$$

• A)-$156,727
• B)-$131,301
• C)-$74,208
• D)$11,507
• E)$26,433

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Definitions:

Disorder-Specific Behaviors

Actions or patterns of behavior that are characteristic of, or unique to, a particular psychological disorder.

Serotonin Activity

Serotonin activity describes the functioning of serotonin, a neurotransmitter, in the brain, which influences mood, emotion, and sleep among other processes.

Caudate Nuclei

Structures in the brain, within the region known as the basal ganglia, that help convert sensory information into thoughts and actions.

Body Dysmorphic Disorder

A mental health condition characterized by obsessive focus on perceived flaws in one's physical appearance, often leading to significant distress and impairment in functioning.