Purchase Solution

ACH Disbursing and NPV

Not what you're looking for?

Ask Custom Question

The MC Donald Company can convert to ACH disbursing for $20,000. McDonald averages a perpetual 500 checks per month and has an annual cost of capital of 10%. If ACH disbursing will save McDonald's 20 cents per payment, what is the NPV of the decision to convert to ACH? What is the minimum number of payments per month in order to justify the cost to convert to ACH disbursing?

Purchase this Solution
Solution Summary

This solution shows step-by-step calculations to determine the Net Present Value (NPV) and also the minimum number of payments per month to break even with the cost to convert to ACH disbursing.

Solution Preview

Savings per payment = $0.20
Number of checks per month = 500
Savings per month = 500*0.20=$100
Annual savings = ...

Purchase this Solution
Free BrainMass Quizzes
Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Operations Management

This quiz tests a student's knowledge about Operations Management

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

View More Free Quizzes
Related BrainMass Solutions

  • ACH Payment Cost Per-Check Cost

    275992 ACH Payment Cost Per-Check Cost Many companies are wondering if they should emulate Sears, Roebuck & Company in its implementation of electronic disbursing.

  • NACHA - The Electronic Payments Association and the ACH Network

    following: * NACHA and its role * ACH network, its role and its relation with NACHA * Key participants and steps in an ACH e-payment * Initiatives at ACH * 896 words * Seven (7) non-APA references

  • Finance questions

    Please see the attachment The solution explains three questions relating to relaxation of credit standard, controlled disbursing and effective annual rate of loan

  • How Nicotine Addiction Affects the Body

    Quite broadly put, ACh release can give a cognitive boost. In the autonomic nervous system, which regulates fight or flight / rest and digest responses, ACh is a parasympathetic (rest and digest) neurotransmitter.

  • Ethics of Controlled Disbursement by Bank

    How might control disbursing still be viewed as a form of "remote disbursing," and therefore be considered unethical?

  • Ethics- Controlled Disbursing

    How might controlled disbursing still be viewed as a form of "remote disbursing," and therefore be considered unethical?

  • Suppose a small group of physicists and mathematicians

    I have summarised and plotted N-Ach and N-Aff in the attached Excel file. I have deliberately removed the outlier when N-Aff = 2. I have fitted a linear trendline for N-Aff vs. N-Ach.

  • Finance problems

    How might controlled disbursing still be viewed as a form of "remote disbursing," and therefore be considered unethical?

  • Receptor subtypes for ACh and NE

    107586 Receptor subtypes for ACh and NE List the receptor subtypes for ACh and NE, and indicate the major sites where each type is found. Here's an overview fact to remember: most sympathetic postganglionic neurons are adrenergic.

View More Related Solutions