Amaron Products is considering using a lockbox system to speed up collections from its customers. They have two proposals to consider: one from U.S Bank, and one from Wells Fargo to provide a lockbox service. The basic information about each bank's proposal is presented in the table below.

DATA INPUTS
	U. S. Bank	Wells Fargo
Rate on money market investments	2.10%	2.10%
Average Customer payment	$2,333	$2,333
Average number of payments per day	65	65
Annual fee	$4,800	$12,000
Cost per transaction	$0.25	$0.08
Reduction in collection time	4	5

(a) What is the Net Present Value (NPV) of each of the new lockbox system proposals? (Round to the nearest whole dollar)

(b) How many customers are needed, on average each day, to make each of the lockbox systems break-even? (Round to the nearest whole customer)

(c) Which Lockbox system should Amaron Product prefer to implement? (U.S. Bank or Wells Fargo)

(d) What would Amaron's new Accounts Receivable balance be after implementing the preferred Lockbox system? (Round to the nearest whole dollar)