MLo, Inc. can convert its disbursements from check to ACH for an upfront investment of $5,000. Historically, MLo has 5,000 disbursements per year. If ACH transfers are $0.20 cheaper than checks, what is the NPV of switching to ACH? Assume a discount rate of 10% and that the historical disbursement volume continues in perpetuity.

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Heres how to calculate the Net Present Value NPV of MLo Inc switching to ACH 1 Annual Cost Sa... View the full answer