Jane's restaurant accepts checks. The problem with checks, however, is that it usually takes a few days to process them from the time you receive a check written by a customer to the time they are transferred to Jane's bank account. And not all checks can be cashed. If they are not cashed, for example, if the customer's account balance is insufficient, Jane will be fined by the bank. She loses about $400 a year from such incidents. And, on average, every year, she loses 50 days of interest on all of her checks because of the delay in processing them. At present, Jane's bank account has an interest rate of 5% and she receives checks for an average of $3,000 a day.

Now a student at mtm-china has told Jane that if Jane installs a debit card device and no longer accepts cheques from customers, the money will be paid to Jane's bank account immediately after the customer swiped the debit card, without waiting. But installing a debit card device requires a monthly payment of $40 to the bank.

Question:

1. If Jane USES a debit card device, what is the total annual cost of her debit card device?

2. What are Jane's expected benefits from installing a debit card device (leaving aside the total annual cost of installing a debit card device)?

3. Considering the total annual cost and expected revenue of a debit card device, do you think Jane should use this debit card device?