(Cash receipts acceleration system) Peggy Pierce Designs Inc. is a vertically integrated national manufacturer and retailer of women's clothing, Currently, the firm has no coordinated cash management system A proposal, however, from the First Pennsylvania Bank aimed at speeding up cash collections is being examined by several of Pierce's corporate executives The firm currently uses a centralized billing procedure, which requires that all checks be mailed to the Philadelphia head office for processing and eventual deposit. Under this arrangement, all the customers' remittance checks take an average of 5 business days to reach the head office. Once in Philadelphia, another 1 days are required to process the checks for ultimato deposit at the First Pennsylvania Bank The firm's daily remittances averago $2.0 million. The average check size h $2,000. Pierce Designs currently earns 6 percent annually on its marketable-securities portfolio Under the proposed plan, First Pennsylvania said that they could reduce funds tied up by mail float to 3 days, and processing float will be eliminated Funds would then be transferred twice each business day by means of automated depository transfor checks from local banks to the First Pennsylvania Bank. Each DTC costs $13. These transfers will occur all 270 business days of the year Each check processed through the proposed canh collection system will cost $0.25 a. What amount of cash balances will be freed up y Peggy Pleroo Designs Inc. adopts the system suggested by First Pennsylvania? (Round to the nearest dollar)