Lockbox system Eagle Industries feels that a lockbox system can shorten its accounts receivable collection period by 5 days. Credit sales are $3,400,000 per year, billed on a continuous basis. The firm has other equally risky investments with a return of 20%. The cost of the lockbox system is $10,000 per year. (Note: Assume a 365-day year.) a. What amount of cash will be made available for other uses under the lockbox system? b. What net benefit (cost) will the firm realize if it adopts the lockbox system? Should it adopt the proposed lockbox system? a. The amount of cash that will be made available for other uses under the lockbox system is $. (Round to the nearest dollar.) b. The net benefit (cost) the firm will realize if it adopts the lockbox system is $. (Round to the nearest dollar. Enter a negative number for a net loss.) 235 Lockbox system Eagle Industries feels that a lockbox system can shorten its accounts receivable collection period by 5 days. Credit sales are $3,400,000 per year, billed on a continuous basis. The firm has other equally risky investments with a return of 20%. The cost of the lockbox system is $10,000 per year. (Note: Assume a 365-day year.) a. What amount of cash will be made available for other uses under the lockbox system? nearest dollar.) b. The net benefit (cost) the firm will realize if it adopts the lockbox system is $. (Round to the nearest dollar. Enter a negative number for a net loss.) Should it adopt the proposed lockbox system? (Select the best answer below.) Yes No