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Bird's eye treehouses inc, a kentucky company, has determined that a majority of it's customers are located in the pennsylvania area. It therefore is considering

Bird's eye treehouses inc, a kentucky company, has determined that a majority of it's customers are located in the pennsylvania area. It therefore is considering using a lockbox system offered by a bank located in Pittsburgh. The bank has estimated that use of the system will reduce collection time by two days. Based on the following information should the lockbox system be adopted? Average number of payments per day? 750 Average value of payment $980 Variable lockbox fee (per transaction) .35 Annual interest rate on money market securities 7%

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