Bird's Eye Treehouses, Incorporated, a Kentucky company, has determined that a majority of its 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 1.5 days. Based on the following information, should the lockbox system be adopted? Assume 365 days per year. Average number of payments per day 825 $ Average value of payment 745 Variable lockbox fee (per transaction) $ .15 Annual interest rate on money market 5.5% securities a. What is the NPV of the new lockbox system? (Do no round intermediate calculations and round your answer to 2 decimal praces, e.g., 32.16.) b. Suppose in addition to the variable charge that there is an annual fixed charge of $5,000 to be paid at the end of each year. What is the NPV now? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. NPV b. NPV Your firm has an average receipt size of $135. A bank has approached you concerning a lockbox service that will decrease your total collection time by two days. You typically receive 4,900 checks per day. The daily interest rate is .016 percent. The bank charges a lockbox fee of $185 per day. a. What is the NPV of accepting the lockbox agreement? (Do not round intermediate calculations.) b. What would the net annual savings be if the service were adopted? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. NPV b. Net annual savings