Question: A company is considering implementing a lockbox system. There is an annual fee of $6,440 plus a transaction fee of $0.05 per payment. The average

A company is considering implementing a lockbox system. There is an annual fee of $6,440 plus a transaction fee of $0.05 per payment. The average size of customer payments is $3,120, and there are 30 payments made daily on average.The company can earn an EAR of 3.00% on its cash balances.For the lockbox system to be adopted with a positive NPV, by how many days should the average collection time be reduced at a minimum?Fractional answers are OK.(Assume 365 days in a year.)

Question 19 options:

2.37

2.43

2.49

2.55

2.62

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