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Bird's Eye Treehouses, Inc., a Kentucky company, has deterioined that customers are located in the Pennsylvania area. It therefore is consi lockbox system offered by

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Bird's Eye Treehouses, Inc., a Kentucky company, has deterioined that customers are located in the Pennsylvania area. It therefore is consi lockbox system offered by a bank located in Pittsburgh. The bank has est of the system will reduce collection time by 1.5 days. Assume 365 days a Average number of payments per day Average value of payment Variable lockbox fee (per transaction) Annual interest rate on money market securities 850 $800 $ .10 3.2% ces a. What is the NPV of the new lockbox system? (Do not round intermedia calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Suppose in addition to the variable charge that there is an annual fixed $3,000 to be paid at the end of each year. What is the NPV now? (A ne should be indicated by a minus sign. Do not round intermediate calc round your answer to 2 decimal places, e.g., 32.16.) NPV NPV Prey 1 of 1 HHH Nort

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