Cash Management at Webb Corporation Webb Corporation was founded 20 years ago by its president, Bryan Webb. The company originally began as a mailorder company, but has grown rapidly in recent years, in large part due to its website. Because of the wide geographical dispersion of the company's customers, it currently employs a lock-box system with collection centers in San Francisco, St. Louis, Atlanta, and Boston Holly Lennon, the company's treasurer, has been examining the current cash collection policies. On average, each lockbox center handles $160,000 in payments each day. The company's current policy is to invest these payments in shortterm marketable securities daily at the collection center banks. Every two weeks, the investment accounts are swept; the proceeds are wiretransferred to Webb's headquarters in Dallas to meet the company's payroll. The investment accounts each earn 0.015 percent per day, and the wire transfers cost 0.15 percent of the amount transferred. Holly has been approached by Third National Bank, located just outside Dallas, about the possibility of setting up a concentration banking system for Webb Corp. Third National will accept each of the lockbox center's daily payments via automated clearinghouse (ACH) transfers in lieu of wire transfers. The ACHtransferred funds will not be available for use for one day. Once cleared, the funds will be deposited in a shortterm account, which will yield 0.015 percent per day. Each ACH transfer will cost $500. Bryan has asked Holly to determine which cash management system will be the best for the company. As her assistant, Holly has asked you to answer the following questions