Your firm has an average recelpt size of $$65.$ A bank has approached you concerning a lockbox service that will decrease your total collection time by $2$ days. You typically recelve $8,700$ checks per day. The dally interest rate is $0\mathrm{.}02$ percent.

If the bank charges a fee of $$210$ 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