Your firm has an average receipt size of $135. A bank has approached you concerning a lockbox service that will decrease your total collection time by two days. You typically receive 4,900 checks per day. The daily interest rate is .016 percent. The bank charges a lockbox fee of $185 per day.

a.	What is the NPV of accepting the lockbox agreement? (Do not round intermediate calculations.)
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., 32.16.)