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Rothesay Submarine Manufacturing is investigating a lockbox system to reduce its collection time. It has determined the following: Average number of payments per day400 Average

Rothesay Submarine Manufacturing is investigating a lockbox system to reduce its collection time. It has determined the following:

Average number of payments per day400

Average value of payment$990

Variable lockbox fee (per transaction)$0.35

Daily interest rate on money market securities0.068%

The total collection time will be reduced by four days if the lockbox system is adopted.

c.What is the net cash flow per day from adopting? Per cheque?

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