ou are considering implementing a lockbox system for your firm. The system is expected to reduce the collection time by 3 days. On an average day, your firm receives 1,370 checks with an average value of $880 each. The daily interest rate on Treasury bills is 0.01 percent. The bank charge per check would be $.25. What is the net present value of this lockbox arrangement

Answers

Answer 1

The net present value of this lockbox arrangement is $1,205,378.06.

Since you are considering implementing a lockbox system for your firm, and on an average day, your firm receives 1,370 checks with an average value of $ 880 each, and the daily interest rate on Treasury bills is 0.01 percent, and the bank charge per check would be $ 0.25, to determine what is the net present value of this lockbox arrangement, the following calculation must be performed:

((1370 x 880) x 1.0001) - (1370 x 0.25) = X 1,205,720.56 - 342.5 = X 1,205,378.06 = X

Therefore, the net present value of this lockbox arrangement is $1,205,378.06.

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Related Questions

A company has a before-tax cost of common equity of 14%, a pre-tax cost of debt of 6%, a cost of preferred equity of 8%, and a marginal tax rate of 34%. The current market value of the company is $150 million, with $75 million common equity, $50 million debt, and $25 million preferred equity. What is this company's weighted average cost of capital?

Answers

Weighted average cost of capital = [Cost of equity * Proportion of equity] +[Cost of preferred stock * Proportion of preferred stock] +[Cost of debt *(1-tax rate)*proportion of debt]

Cost of equity =0.14

Proportion of equity = 75/150 = 3/6

Cost of preferred stock = 0.08

Proportion of preferred stock = 25/150 = 1/6

Cost of debt = 0.06

Tax rate = 0.34

Proportion of debt = 50/150 = 2/6

Weighted average cost of capital =[0.14*3/6]+[0.08*1/6]+[0.06 (1-0.34)*2/6]

Weighted average cost of capital = 0.07+0.013+0.0128 = 0.0958 = 9.58%

where does the 32 come from in cash received for common stock issued

Answers


A public company can issue common stock to the shareholders of acquisition targets, which they can then sell for cash. This approach is also possible for private companies, but the recipients of those shares will have a much more difficult time selling their shares.

Multiply the number of shares issued by the price per share. Doing this calculation gives you the amount of cash raised by the sale of the stock. For example, if the company issues 100 shares at $10 per share, the result is $1,000 of additional capital raised from stock issuances.

Why should a country trade with other
nations?
A. to import as much as possible from other countries
B. to export 30% of production and stimulate
economic growth
C. to take advantage of the production strengths of
each country

Answers

B is the most reasonable answer

Harris Teeter is advertising a sale on hamburger buns. What is the impact on the demand for hamburgers

Answers

The impact on the demand for hamburgers when Harris Teeter advertised a sale on Hamburger buns is an increase in the demand for hamburgers.

A sale is an activity where goods are sold at discounted prices. When a sale is advertised, people are most likely going to seize the opportunity to purchase goods at discounted amounts.

There will thus be an increase in the demand for goods.

So, the impact on the demand for hamburgers when Harris Teeter advertises a sale is an increase.

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$1,000 par value zero coupon bonds, ignore liquidity premiums Bond Years to maturity Yield to Maturity A 1 6.00% B 2 7.50% C 3 7.99% D 4 8.49% E 5 10.70% The expected one-year interest rate three years from now should be about _________. 8.00% 7.00 % 9.00% 10.00%

Answers

$1000 coupons for coupons ignore liquidity premium bond you’re so mature healed to maturity a temperature of a tree family ancient mayonnaise

Select all that apply.

Work environments can be:

indoor
outdoor
both indoor and outdoor
none of the above

Answers

Answer:

C. Both indoor and outdoor

Answer:

C

Explanation:

A firm is considering purchasing two assets. Asset A will have a useful life of 15 years and cost $3 million; it will have installation costs of $400,000 but no salvage or residual value. Asset B will have a useful life of 6 years and cost $1.3 million; it will have installation costs of $180,000 and a salvage or residual value of $300,000. Which asset will have a greater annual straight-line depreciation?
A) Asset B has $40,000 more in depreciation per year.
B) Asset B has $30,000 more in depreciation per year.
C) Asset A has $30,000 more in depreciation per year.
D) Asset A has $40,000 more in depreciation per year.

Answers

7919191922827aajashsg
89

explain the advantages of earthworm farming​

Answers

Answer:

Worms help to increase the amount of air and water that gets into the soil. They break down organic matter, like leaves and grass into things that plants can use. When they eat, they leave behind castings that are a very valuable type of fertilizer. Earthworms are like free farm help.

Explanation:

Can you give me brainliest

The Copper Grill has the following current assets: cash, $11 million; receivables, $44 million; inventory, $45 million; and other current
assets $3 million. The Copper Grill has the following liabilities: accounts payable, $37 million; current portion of long-term debt, $6
million; and long-term debt, $11 million.
Based on these amounts, calculate the current ratio and the acid-test ratio.
Based on these amounts, calculate the current ratio and the acid-test ratio for The Copper Grill. (Round your answers to 2 decimal
places.)
The Copper Grill
Current ratio
Acid-test ratio

Answers

Answer:

Current ratio:

Current ratio=current assets/ current liabilities

Current assets= 11 million + 55 million +40 million + 6 million= 112 million

Current liabilities= 37 million + 8 million= 45 million

Current ratio= 112 million/ 45 million= 2.49

 The current ratio is a liquidity ratio that assesses a firm's capacity to pay short-term or one-year obligations. It explains to investors and other stakeholders how a firm might use current assets on its balance sheet to pay off current debt and other obligations.

 The current ratio is called "current" because it includes all current assets and liabilities, unlike many other liquidity ratios. The working capital ratio is another name for the current ratio.

 Analysts determine the ratio by comparing a company's current assets and liabilities. Cash, accounts receivable, inventory, and other current assets (OCA) that are projected to be liquidated or converted into cash in less than one year are reported as current assets on a firm's balance sheet. Accounts payable, wages, taxes payable, short-term loans, and the current portion of long-term debt are all examples of current liabilities.

Acid-test ratio

Acid test ratio= quick assets/ current liabilities

Quick assets= 11 million+ 55 million= 66 million

Current liabilities= 45 million

Acid test ratio= 66 million/ 45 million= 1.47

The acid-test ratio (ATR), also known as the quick ratio, calculates how well current assets can pay current obligations to determine a company's liquidity. Only the most liquid current assets that can be turned into cash in 90 days or less are used in the quick ratio.

 The quick ratio is computed by dividing the total cash and equivalents, accounts receivables, and marketable investments by current liabilities.

 Companies should aim for a ratio of 1.0 or above, indicating that they have sufficient current assets to meet their short-term debt commitments or expenses.

Explanation:

Current ratio= 112 million/ 45 million= 2.49

Acid test ratio= 66 million/ 45 million= 1.47

The current ratio and the acid-test ratio for The Copper Grill are 2.60 and 1.55 respectively.

What is a good current ratio?

A healthy current ratio is between 1.2 and 2, indicating that the company has twice as many current assets as liabilities to cover its debts. A current ratio of less than one indicates that the company lacks sufficient liquid assets to satisfy its short-term liabilities.

Given

cash, $11 million

receivables, $44 million;

inventory, $45 million

other current assets $3 million

accounts payable, $37 million;

current portion of long-term debt, $6 million

long-term debt, $11 million

Required to Calculate the Current ratio and Acid-test ratio =?

Current ratio = Current Assets / Current Liability

Current Assets = cash + receivables + inventory + other current assets

                         = 11 + 44 + 45 + 3 = $112 million

Current Liability = accounts payable + current portion of long-term debt

                           = 37 + 6 = $43 million

Current ratio = Current Assets / Current Liability

Current ratio = 112 / 43 = 2.60

Acid-test ratio = Current Assets - Inventory / Current Liability

                        = 112 - 45 / 43

Acid-test ratio = 1.55

Thus, The Copper Grill's current ratio and acid-test ratio are 2.60 and 1.55, respectively. The current ratio calculates a company's ability to pay short-term or current liabilities, such as payables and loans, with short-term or current assets, such as receivables, inventories, and cash.

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Help help help help bell businesses

Answers

Question

Monetary policy can be either expansionary (growing)or contractionary (becoming smaller).

what is the purpose of expansionary monetary policy?

Answer:

C. to increase real output in the economy

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Will report if fake answer
A more wordy and complex way to say "we are cringe"

Answers

Answer:

We are excruciatingly awkward and humiliated

Answer:

we are extremely embarrassing

we make you feel tremendously uncomfortable

Explanation:

Enter the December 31 adjustments in the following table for prepaid insurance, supplies, accrued wages, accrued revenue, and unearned revenue. Then, complete the adjusted trial balance by entering the adjusted balance for each of the accounts.

Answers

……………..;::::::::::::::::::::::::::::::::::::::::::::::::::::::

Prezario's has 25,000 shares of stock outstanding with a par value of $1 per share. The current market value of the firm is $847,000. Currently, the retained earnings account balance is $428,000 and the capital in excess of par value account balance is $187,000. The company just announced a 3-for-1 stock split. What is the common stock account balance after the stock split?

Answers

Based on the information given the common stock account balance after the stock split is $25,000.

Using this formula

Common stock account balance=Shares of stock outstanding× Par value

Where:

Shares of stock outstanding=25,000

Par value=$1

Let plug in the formula

Common stock account balance=25,000×$1

Common stock account balance=$25,000

Inconclusion the common stock account balance after the stock split is $25,000.

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6.You now have the agreement with the company and will sign the contract as you and the company are satisfied with the contract agreement. Of course, this is will be your first step to build a strong relationship between you and your employer. Your manager will know more about you. This represent which of the negotiation process element?


A- Gather information

B- Manage concessions

C- Manage time

D- Build the relationship


7.You and the other party have either come to an agreement on the terms, or one party has decided that the final offer is unacceptable and therefore must be walked away from. Most negotiators assume that if their best offer has been rejected, there’s nothing left to do. You made your best offer and that’s the best you can do. This represent which of the negotiation process element?


A- Gather information

B- Manage concessions

C- Manage time

D- Build the relationship


8.Assemble the information you’ve gathered in a way that supports your position. You can present facts that show what you will contribute to the organization in the future, which in turn demonstrates your value. This represent which of the negotiation process element?


A- Gather information

B- Manage concessions

C- Manage time

D- Build the relationship

Answers

A- Gather information

B- Manage concessions

C- Manage time

D- Build the relationship

7.You and the other party have either come to an agreement on the terms, or one party has decided that the final offer is unacceptable and therefore must be walked away from. Most negotiators assume that if their best offer has been rejected, there’s nothing left to do. You made your best offer and that’s the best you can do. This represent which of the negotiation process element?

A- Gather information

B- Manage concessions

C- Manage time

D- Build the relationship

8.Assemble the information you’ve gathered in a way that supports your position. You can present facts that show what you will contribute to the organization in the future, which in turn demonstrates your value. This represent which of the negotiation process element?

A- Gather information

B- Manage concessions

C- Manage time

D- Build the relationship

Which type of listening occurs when we are focused on sharing our own point of view instead of listening to someone else?​

Answers

Answer:

pwede ba po tagalog

nalang pwede

All goods to be imported whether or not subject to import duties must be declared in writing on prescribed forms.

Answers

A customs declaration is an official document that lists and gives details of goods that are being imported or exported. In legal terms, a customs declaration is the act whereby a person indicates the wish to place goods under a given customs procedure.

Help help help help help help straightforward answer

Answers

Answer is:

C. interest

explain the appearance of earthworm in brief​

Answers

Explanation:

An earthworm is a terrestrial invertebrate that belongs to the phylum Annelida. They exhibit a tube-within-a-tube body plan, are externally segmented with corresponding internal segmentation, and usually have setae on all segments. They occur worldwide where soil, water, and temperature allow

cost of good s sold RS 80700 opening stock RS 5800 closing stock RS 6000.what is the amount of purchase ?​

Answers

Answer:80900

Explanation:

Inventory at the beginning of the period = COGS + Inventory at the end of the period-Purchase

5800=80700+6000-P

Products that a seller sells in other countries are called
A. imports.
B. exports.
c. trade barriers.
D. quotas.

Answers

Answer:

im pretty sure it is A thx

Answer:

B. exports

Explanation:

It's leaving the country that the seller resides in.

Help help help help help help

Answers

the answer I think is c

Explanation:

for the reason I have no clue I just joined and said to do this so just ignore me

Cultural Change
The General Duty Clause imposes requirements on

Answers

Answer:

employer

Explanation:

The general duty clause imposes requirements on employer to provide every employee with a place of employment that are causing or a likely to cause death or serious Physical harms.

The Jehan Division of a company manufactures and sells Product A. The current selling price
is $73 per unit. Per-unit costs are as follows:
Direct materials $ 5.00
Direct labor 6.00
Manufacturing overhead:
Variable 7.00
Fixed 8.00
Selling costs:
Commissions 1.00
Shipping 1.50
Fixed 1.00
$ 29.50

The contribution margin per unit is: $____________

CONSIDER THE FOLLOWING QUESTIONS
1. A special one-time order to purchase 20,000 units was recently received at a price of $60 per unit. There is enough capacity to fill the order and filling this order will NOT disrupt current operations. If BLUE accepts this order, variable manufacturing costs will be reduced by $5 per unit and variable selling costs (both commission and shipping) will go down by 80%.
Is there an opportunity cost to BLUE, yes or no, and WHY?
________ (yes or no)

Answers

Answer: yes

Explanation: i dont understand what you said below but its yes

Answer:

$20.50 per unit

Explanation:

The minimum acceptable selling price is equal to the variable cost per unit

Variable Cost per unit =$5.00+6.00+7.00+1.00+1.50 =$20.50

So the Minimum Selling Price shall be $20.50 per unit

1. WHO CAN DO AFFILIATE MARKETING?

Answers

Answer:

anyone

Explanation:

is this the only question?

Management of Wee Ones (WO), an operator of day-care facilities, wants the company's profit to be subdivided by center. The firm's accountant has provided the following data:
Center Budgeted Revenue Actual Revenue Budgeted Direct Costs Actual Direct Costs Downtown $ 342,000 $ 363,300 $ 310,000 $ 347,600 Irvine 598,500 622,800 573,500 521,400 H. Beach 769,500 743,900 666,500 711,000 Totals $ 1,710,000 $ 1,730,000 $ 1,550,000 $ 1,580,000
WO's advertising, which is handled by the home office, is not reflected in the preceding figures and amounted to $74,000. Assume that management used the allocation base that is most influenced by advertising effort and consistent with sound managerial accounting practices. How much advertising would be allocated to the Irvine center?

Answers

Imma need more than 10 pionts1299 wo2929191

This SKU has an inconsistent product classification with the ASIN. Please submit a feed to update this SKU to match the ASIN product classification

Answers

It should be noted that a stock-keeping unit (SKU) means a scannable bar code that is usually seen on product labels that are in a retail store.

Your information is incomplete. Therefore, an overview of SKU will be given. The stock-keeping unit (SKU) allows vendors to be able to track the movement of their inventory.

On the other hand, ASIN stands for Amazon Standard Identification Number. It is a ten letters unique identifier for a product that is given by Amazon.

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a firm has an Roa of 14% a debt equity ratio .80 a tax rate of 35% and the interest rate on the debt is 10% the firm's Roe is ​

Answers

Answer:

11.18%

Explanation:

i had this question too

Help help help help help help

Answers

Answer:

37%

Explanation:

I did the division 290/780*100. Mark brainliest if this answer helped you

Help help help help help help please please

Answers

Answer:

A

Explanation:

The final answer would be A

Amy currently volunteers at her local hospital. She would like to one day
become a doctor. What is the best type of student organization for Amy to
join?
A. One that has a focus on community service
B. One that has a focus on building marketing skills
C. One that has a focus on health care careers
O D. One that has a focus on technology careers

Answers

Answer:

C

Explanation:

C focuses on health care careers it makes the most sense if she wants to be a doctor.

One that has a focus on health care careers
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