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You are considering implementing a lockbox system for your firm. The system is expected to reduce the collection time by 3 days. On an average

You are considering implementing a lockbox system for your firm. The system is expected to reduce the collection time by 3 days. On an average day, your firm receives 1,370 checks with an average value of $880 each. The daily interest rate on Treasury bills is 0.01 percent. The bank charge per check would be $.25. What is the net present value of this lockbox arrangement? Group of answer choices $191,800 $187,964 $113,162 $168,784 $147,686

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