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 1 options:

	2.37
	2.43
	2.49
	2.55
	2.62