The Hardin-Gehr Corporation (HGC) began operations 5 years ago as a small firm serving customers in the Detroit area. However, its reputation and market area grew quickly, so that today HGC has customers throughout the entire US. Despite its broad customer base, HGC has maintained its headquarters in Detroit and keeps its central billing system there. HGCs management is considering an alternative collection procedure to reduce its mail time and processing float. In average, it takes 5 days from the time customers mail payments until HGC is able to receive, process, and deposit them. HGC would like to set up a lockbox collection system, which it estimates would reduce the time lag from customer mailing to deposit by 3 days-bringing it down to 2 days. HGC receives an average of $1,400,000 in payments per day. a. How many days of collection float now exist (HGCs customers disbursement float) and what would it be under the lockbox system? What reduction in cash balances could HGC achieve by initiating the lockbox system? b. If HGC has an opportunity cost of 10 percent, how much is the lockbox system worth on an annual basis? c. What is the maximum monthly charge HGC should pay for the lockbox system?