Anne Teak, the financial manager of a furniture manufacturer, is considering operating a lock-box system. She forecasts that 400 payments a day will be made to lock boxes with an average payment size of $3,000. The bank's charge for operating the lock boxes is $0.40 a check. The interest rate is 0.011% per day.

A) If the lock box makes the cash available 2 days earlier, calculate the net daily advantage of the system. ( Do not round intermediate calculations.)

Daily Interest Saved =

B) Is it worthwhile to adopt the system?

C) What mininmum reduction in the time to collect and process each check is needed to justify use of the lock-box system? ( Do not round intermediate calculations. Round your answer to 2 decimal places.)

Minimum reduction in time = _____ days