Question: Question 23 (1 point) A company is considering implementing a lockbox system. There is an annual fee of $7,220 plus a transaction fee of $0.05

Question 23 (1 point) A company is considering implementing a lockbox

Question 23 (1 point) A company is considering implementing a lockbox system. There is an annual fee of $7,220 plus a transaction fee of $0.05 per payment. The average size of customer payments is $3,450, and there are 36 payments made daily on average. The company can earn an EAR of 3.54% 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.) 1.79 1.84 1.88 1.93 1.97

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