Question: How do you solve this? Full solution please Question 22 0/3.5 points ABC Co is considering using a lockbox system. The use of the system

How do you solve this? Full solution please

Question 22 0/3.5 points ABC Co is considering using a lockbox system. The use of the system will reduce collection time by 1.5 days. The company receives on an average 650 cheques everyday with average value of each cheque being $700. The bank will charge $0.10 processing fee for each cheque. Daily T-bill rate is 0.01%. There is an annual fixed charge of $2,250 to be paid at the end of each year for the lockbox services. ABC should: adopt lockbox as the NPV is $20,766 adopt lockbox as the NPV is $9,516 not adopt the lockbox as the NPV is - $5,236 not adopt the lockbox as the NPV is -$27,984 x adopt lockbox as the NPV is $7,392 Question 22 0/3.5 points ABC Co is considering using a lockbox system. The use of the system will reduce collection time by 1.5 days. The company receives on an average 650 cheques everyday with average value of each cheque being $700. The bank will charge $0.10 processing fee for each cheque. Daily T-bill rate is 0.01%. There is an annual fixed charge of $2,250 to be paid at the end of each year for the lockbox services. ABC should: adopt lockbox as the NPV is $20,766 adopt lockbox as the NPV is $9,516 not adopt the lockbox as the NPV is - $5,236 not adopt the lockbox as the NPV is -$27,984 x adopt lockbox as the NPV is $7,392

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