The Tigmon Corporation has $150 receipt size on average. Eirmon Bank Ltd. offered the firm to consider their lockbox arrangement. This arrangement will cause a delay in collection float by three days. The bank will charge $230 a day. The firm in normal course of action receives 20,000 cheques a day. Interest rate is 0.014 percent per day. Required: 1. Determine whether the firm should accept this offer. 2. Compute the total savings per year if the banks offer is accepted.