Anne Teak, the financial manager of a furniture manufacturer, is considering operating a lock-box system. She forecasts that 350 payments a day will be made to lock boxes with an average payment size of $2,500. The bank's charge for operating the lock boxes is $0.30 a check. The interest rate is 0.012% per day.

a.If the lock box makes the cash available 2 days earlier, calculate the net daily advantage of the system. please explain how to find answer, so it can applied to similar question

Daily interest saved

c.What minimum reduction in the time to collect and process each check is needed to justify use of the lock-box system? please show all calculations

Minimum reduction in time (days)