Your firm has an average receipt size of $$95.$ A bank has approached you concerning a lockbox service that will decrease your total collection time by $2$ days. You typically receive $9,400$ checks per day. The daily interest rate is $0\mathrm{.}02$ percent.

If the bank charges a fee of $$190$ per day, what is the NPV of the lockbox project?

NPV

What would the net annual savings be if the service were adopted?

Net annual savings