The financial manager of Hot Cocoa Ltd. is trying to improve the firms liquidity position and reduce its reliance on short-term loans. In order to do so, he has decided to extend the timing of disbursements by 1 day and is considering a lockbox system being proposed by the companys bank. The lockbox system will speed up collections by 2.5 days and will cost the company $70,000. If the lockbox system is implemented the bank would also require the firm to maintain a compensating balance of $300,000. The firms daily remittances are $1.8 million, and the company could earn 7% on the funds freed up. Should they go ahead and put these changes in place? (show all calculations)