PROBLEM 2 Your company, i.e., Tagdum-Tagdum, has recently received an offer from Pirelli Bank to establish a countrywide lockbox system, which could significantly expedite its cash collection. As per Pirelli's proposal, altogether 20 lockboxes will be established in strategic collection points of the country. Checks will be collected each working day of the year and sent immediately to Tagdum-Tagdum's concentration banks using wire transfer. You estimate that the installation of the lockbox system should reduce collection float by at least 4 days and Pirelli will be able to transfer collections to the concentration banks every day except the following: . Weekly holidays per month on Fridays and Saturdays assuming 4 weeks a month Eid holidays for two eids a year for three days each eid Bank holidays on June 30 and on December 31 Shaheed Dibash on February 21 Independence day on 26 March Victory day on 16 December Durga Puja holiday for one day Bouddha Purnima holiday for one day Christmas holiday for one day Pahela Bashakh on 14 April Other holidays for 5 days . . . . You also estimate that 98 percent of annual net sales will be collected each year. Pirelli will charge a monthly rental fees of Tk. 3,000 per lockbox and Tk.40 for each wire transfer to the concentration banks. The opportunity cost of funds available to Tagdum-Tagdum is 8 percent. As the negotiator from your company, do the initial calculations and tell if Porelli's proposal could be accepted.( assume a 365-day year.)