7. Lockbox (PLEASE DO NOT USE EXCEL TO SOLVE. SHOW ALL CALCULATIONS BY HAND). The Chief Financial Officer (CFO) of ABC Company is considering opening a lockbox. Checks cleared through the lockbox will amount to $600,000 per month, and the lockbox will make cash available to the company three days earlier than is now the case. The bank offers two ways for the company to pay for the lockbox: a. The company can pay a fee of $0.15 per check cleared through the lockbox; or, b. The company can pay by holding a compensating balance of $40,000 in the bank. (A compensating balance is an amount of money held in the bank in a deposit account that earns no interest.) If the average check size for ABC Company is $1,000, which alternative payment method is cheaper for the company? The interest rate is 3% per year