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Allstar Inc. is considering a lockbox system that would reduce its float by three days. An expected 5 0 0 collections per day will be

Allstar Inc. is considering a lockbox system that would reduce its float by three days. An expected 500 collections per day will be made to the lockbox with an average payment size of $1,000. The bank's charge for operating the lockboxes is $.30 per cheque. The interest rate is .015 percent per day. How much will Allstar save per day by having the lockbox?
Multiple Choice
-$75
$150
$75
$0
$225

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