E connect FINA 6341 fall 2017; fall 2017 A Hunter Casselberry chap 27 hw instructions I help Question 5 (of 5) ! 6 e Save & Exit Submit value: 10.00 points Bird's Eye Treehouses, Inc., a Kentucky company, has determined that a majority of its customers are located in the Pennsylvania area. It therefore is considering using a lockbox system offered by a bank located in Pittsburgh. The bank has estimated that use of the system will reduce collection time by 1.5 days. Average number of payments per day Average value of payment Variable lockbox fee (per transaction) Annual interest rate on money market securities 760 $ 710 $ 10 What is the NPV of the new lockbox system? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV Suppose in addition to the variable charge that there is an annual fixed charge of $3,000 to be paid at the end of each year. What is the NPV now? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV References eBook & Resources Worksheet Difficulty: 2 Intermediate Section: 27.3 Cash Collection and Concentration Check my work = 0 0 8 og 9 9:07 AM 12/8/2017