Question: A company is considering a lockbox system that will reduce the collection time by 2 days on average. The company can earn an APR of

A company is considering a lockbox system that will reduce the collection time by 2 days on average. The company can earn an APR of 5.22% compounded daily on any cash balance. The average number of daily payments submitted to the lockbox is 1,699 with an average cheque size of $101. If the processing fee per cheque is $0.01, what is the NPV of adopting this lockbox? (Assume 365 days in one year.)

Question 3 options:

	$213,178
	$218,788
	$224,398
	$230,008
	$235,618

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