Question: A lockbox system is expected to reduce the average collection time by 2.7 days for Grand Corporation . On an average day, the firm receives

A lockbox system is expected to reduce the average collection time by 2.7 days for Grand Corporation . On an average day, the firm receives 1,611 checks with an average value of $1,681 each. The daily interest rate on Treasury bills is .011 percent. The bank charge per check is $ .57. What is the net present value of this lockbox arrangement?

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