Please answer both questions and show all work in detail. I appreciate your help.

Whitmer Inc. sells to customers all over the U.S., and all receipts come in to its headquarters in New York City. The firm's average accounts receivable balance is $2.5 million, and they are financed by a bank loan at an 11% annual interest rate. The firm is considering setting up a regiona lockbox system to speed up collections, and it believes this would reduce receivables by 20% f the annual cost of the system is S 15 000, what pre-tax ne annua sav ng would be realize n, Loc xwill ence annual average balanc of account receivable which in turn save annual interest costs. Compare this savings with the annual lockbox cost)