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A company is evaluating a lockbox system proposal. The average number of payments received by the company per day is 1 , 5 0 0

A company is evaluating a lockbox system proposal. The average number of payments received by the company per day is 1,500 and the average payment amount is $200. The bank proposing th system will charge the company a variable cost of $0.05 per transaction (i.e. payment proceeds) in addition to a $5000 annual fee. The bank has eliminated that use of the lockbox system will reduce the companies collection time by two days. The annual interest rate is 6% a) should the proposed lockbox system be accepted? b)what is the maximum annual fee the company should pay for this lockbox system?

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