=+LG 6 P15–15 Lockbox system Aditya Birla Retail Limited, an Indian retail company, is considering a lockbox system that can shorten its accounts receivable collection by 1 day.

Credit sales are INR 550,000,000 per year, billed on a continuous basis. The firm has other equally risky investments that earn a return of 14%. The cost of the lockbox system is INR 90,000 per year (Note: Assume a 365-day year.)