1. You are considering implementing a lockbox system for your firm. The system is expected to reduce the collection time by 2 days. On an average day, your firm receives 1,290 checks with an average value of $750 each. The daily interest rate on Treasury bills is 0.01 percent. The bank charge per check would be $.14. What is the net present value of this lockbox arrangement?

2. Denver Interiors, Inc., has sales of $950,000 and cost of goods sold of $700,000. The firm had a beginning inventory of $40,000 and an ending inventory of $50,000. What is the length of the inventory period