Your firm has an average receipt size of $$120.$ A bank has approached you concerning a

lockbox service that will decrease your total collection time by two days. You typically

receive $7,400$ checks per day. The daily interest rate is $\mathrm{.}017$ percent. The bank charges a

lockbox fee of $$170$ per day.

a$.$ What is the NPV of accepting the lockbox agreement? $($Do not round intermediate

calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ What would the net annual savings be if the service were adopted? $($Use $365$ days a

year. Do not round intermediate calculations and round your answer to $2$ decimal

places, e$.$g$.,32\mathrm{.}16.)$