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7) Utility Resources, Inc. receives an average of 80 checks each day with an average value of $312 per check. If the firm decides to

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7) Utility Resources, Inc. receives an average of 80 checks each day with an average value of $312 per check. If the firm decides to install a lockbox system, it can reduce its average collection time by 2 days. The cost of the lockbox system is $.29 per check. The daily interest rate on Treasury bills is .015 percent. What is the present value of the daily cost of the lockbox system? Should lockbox system be installed? 5 Marks

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