The western bank has been discussing the possibility of implementing a lockbox system for one of its customers. Thus far, the bank has gathered the following information about the customer's account:

Average value of each cheque deposited $1,005.00

Average number of cheques deposited each day 36

Variable lockbox fee on each transaction $0.35

Daily interest rate on money market securities 0.02%

Average reduction in clearing time 2 days

What is the net present value of adopting the prosposed lockbox system?

		- $26,820
		-$1,005
		$9,360
		$11,280