need parts b,c and d

(Cash receipts acceleration system) Pegay Pierce Designs inc, is a vertically integrated, nutional manutacturer and retailer of womeris clothing. Currently, the fim has no cocrtinased cash management system. A proposal, however, trom the First Pennsytvania Bank amed at speeding up cash collections is being examined by severil of Plerce's corporate executives: The firm currently uses a centralized biling proceduro, which recuires that al checks be muled to the Philadelphia head office for processing and eventual deposit Under this arrangemen the customers' renitance checks take an average of 6 business days to reach the head office. Once in Philadelphia, another 2 doys ave recuired to process the checks for ultimate depesi the First Penosylvania Bank. The firmis daily remitances average $1.0 milion. The average check size is $1,600. Piorce Designs currently eams 12 percent annualy on its marketable-iecurilies portfola. Under the proposed plan, First Pennsylvaria said that they could reduce funds ted up by mail float to 4 days, and processing float will be eliminated. Funds would then be transterred twice each butiness day by means of automated depository transfor checks from local banks to the. First Pennsyivania Bank. Each DTC costs $17. These transfers wil occur all 270 busineis da of the year. Each check processed through the proposed cash collection system will coat $0.29 a. What amount of cash balances wil be freed up t Pegay Pierce Devigns inc. adopts the syslem suggested by firat Pennsylvania? b. What is the cpportunity cost of maintaining the current banking setup? c. What is the projected annual cost of operating the propoted system? d. Should Plerce adopt the new system? Compute the net annual gain or loss associated with adopting the system. a. What amount of cash balances wit be froed up \& Peggy Pierce Designt inc, adopts the system suggetted by First Pennsylvania"? (Round is the nearest dollar) b. What is the opportunity cont of mantaining the current banking setup? (Round to the nearest dollar) (Cash receipts acceleration system) Pegay Pierce Designs inc, is a vertically integrated, nutional manutacturer and retailer of womeris clothing. Currently, the fim has no cocrtinased cash management system. A proposal, however, trom the First Pennsytvania Bank amed at speeding up cash collections is being examined by severil of Plerce's corporate executives: The firm currently uses a centralized biling proceduro, which recuires that al checks be muled to the Philadelphia head office for processing and eventual deposit Under this arrangemen the customers' renitance checks take an average of 6 business days to reach the head office. Once in Philadelphia, another 2 doys ave recuired to process the checks for ultimate depesi the First Penosylvania Bank. The firmis daily remitances average $1.0 milion. The average check size is $1,600. Piorce Designs currently eams 12 percent annualy on its marketable-iecurilies portfola. Under the proposed plan, First Pennsylvaria said that they could reduce funds ted up by mail float to 4 days, and processing float will be eliminated. Funds would then be transterred twice each butiness day by means of automated depository transfor checks from local banks to the. First Pennsyivania Bank. Each DTC costs $17. These transfers wil occur all 270 busineis da of the year. Each check processed through the proposed cash collection system will coat $0.29 a. What amount of cash balances wil be freed up t Pegay Pierce Devigns inc. adopts the syslem suggested by firat Pennsylvania? b. What is the cpportunity cost of maintaining the current banking setup? c. What is the projected annual cost of operating the propoted system? d. Should Plerce adopt the new system? Compute the net annual gain or loss associated with adopting the system. a. What amount of cash balances wit be froed up \& Peggy Pierce Designt inc, adopts the system suggetted by First Pennsylvania"? (Round is the nearest dollar) b. What is the opportunity cont of mantaining the current banking setup? (Round to the nearest dollar)