Question: Solid Financial provides lockbox services. They estimate that your firm can reduce its average collection mail time by 1.6 days and the clearing and processing

Solid Financial provides lockbox services. They estimate that your firm can reduce its average collection mail time by 1.6 days and the clearing and processing time by 1.2 days by implementing their system. Your firm receives 74 checks a day on with an average value of $9,750 each. The current T-Bill rate is .014 percent per day. Assume a 365-day year. What is the annual amount of income the bank can earn if it installs this service?

$103,232.22

$105,675.00

$106,408.17

$108,746.20

$102,640.00

DO NOT COPY FROM CHEGG I NEED A FULL EXPLANATION

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