Farrelly Corporation's cash inflows average $450,000 /day. Its bank has offered to implement a lock box/concentration banking system that would cut receivables float from 7 days to 3 days for an annual fee of $400,000. Farrelly has a 14% cost of capital and is in the 40% tax bracket. Reference: Ref 12-6 What is the internal rate of return (IRR) of the proposed system? 7.62% 17.78%. 53.33% 13.33%