Mountain top Inc. can reduce its collection time by one day if it installs a lockbox system at a cost of $2,200 a year plus $.52 per transaction. The inn receives an average of 136 payments per day with an average payment of $7,980 each. The interest rate on money market securities is 3.98 percent. Assume a year has 365 days. What is the NPV of the lockbox system?

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The Answer of Mountain top Inc. can reduce its collection time by one day if it installs a lockbox system at a cost of $2,200 a year plus $.52 per transaction. The inn receives an average of 136 payments per day with an average payment of $7,980 each. The interest rate on money market securities is 3.98 percent. Assume a year has 365 days. What is the NPV of the lockbox system?

Mountain Top Inc