5. NPV and Collection Time [L02] Your rm has an average receipt size of $125. A bank has approached you concerning a lockbox service that will decrease your total collection time by two days. You typically receive 5,100 checks per day. The daily interest rate is .016 percent. If the bank charges a fee of $175 per day, should the lockbox project be accepted? What would the net annual savings be if the service were adopted? 6. Using Weighted Average Delay [L01] A mail-order rm processes 5,300 checks per month. Of these, 60 percent are for $47 and 40 percent are for $79. The $47 checks are delayed two days on average; the $79 checks are delayed three days on average. Assume 30 days in a month. a. What is the average daily collection oat? How do you interpret your answer? b. What is the weighted average delay? Use the result to calculate the average daily oat. c. How much should the rm be willing to pay to eliminate the oat? d. If the interest rate is '7 percent per year, calculate the daily cost of the oat. e. How much should the rm be willing to pay to reduce the weighted average oat to 1.5 days