oel’s Jewels is tiny online store selling hand-made jewelry. The store has $500,000 in annual sales and 5 payments per day. Currently, the store processes all the customer payment with its bank in 4 days and at no cost. However, the store is considering entering a contract with Zelle to process their customer payments. Zelle will process the payments instantly but charges a processing fee of $0.25 per processed payment. Assuming the store can earn 12% on released funds, what is the net benefit (NPV) of hiring Zelle? 501 401 301 201

oel’s Jewels is tiny online store selling hand-made jewelry. The store has $500,000 in annual sales and 5 payments per day. Currently, the store processes all the customer payment with its bank in 4 days and at no cost. However, the store is considering entering a contract with Zelle to process their customer payments. Zelle will process the payments instantly but charges a processing fee of $0.25 per processed payment. Assuming the store can earn 12% on released funds, what is the net benefit (NPV) of hiring Zelle? 501 401 301 201

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter17: The Management Of Cash And Marketable Securities

Section: Chapter Questions

Problem 10P

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