A company currently receives all customer payments at its headquarters and then send all checks to its bank for processing. This policy leads to a 10-day payment processing cycle. The company is considering asking customers to send their payments directly to a bank lockbox collection system. The new policy would reduce average mailing time for customer payments by 3 days and reduces average check-processing time by 2 days. Annual collections are $365 million, and the average number of payments received total 1000 per day (assume 365 days per year). The bank has agreed to process the payments for an annual fee of $25,000 plus $0.12 per payment received. Assuming the company can earn 10% on released funds, what is the net benefit (NPV) of establishing the new policy?

Answer Choices:

A. 231,200

B. 331,200

C. 431,200

D. 531,200