No More Books Corporation has an agreement with Floyd Bank whereby the bank handles $6.8 million in collections per day and requires a $440,000 compensating balance. No More Books is contemplating canceling the agreement and dividing its eastern region so that two other banks will handle its business. Banks A and B will each handle $3.4 million of collections per day, and each requires a compensating balance of $290,000. No More Books financial management expects that collections will be accelerated by one day if the eastern region is divided.

a.	What is the NPV of accepting the system? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)
b.	What will be the annual net savings? Assume that the T-bill rate is 2.5 percent annually. (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)
Chips, Inc., a large fertilizer distributor based in California, is planning to use a lockbox system to speed up collections from its customers located on the East Coast. A Philadelphia-area bank will provide this service for an annual fee of $12,000 paid at the end of the year plus 10 cents per transaction. The estimated reduction in collection and processing time is one day. Treasury bills are currently yielding 5 percent per year, and there are 365 days per year. If the average customer payment in this region is $5,500, how many customers each day, on average, are needed to make the system profitable for Cow Chips? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)