ACH Disbursing and NPV
Not what you're looking for?
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