Bob Seiger Co has an average receipt size of $65. A bank has approached Bob Seiger Co concerning a lockbox service that will decrease their total collection time by 2 days. Bob Seiger Co typically receives 9,100 checks per day. The daily interest rate is 0.019 percent.

If the bank charges a fee of $190 per day, what is the NPV of the lockbox project?

What would the net annual savings be if the service were adopted?