You Are Considering Implementing a Lockbox System for Your Firm

You are considering implementing a lockbox system for your firm. The system is expected to reduce the collection time by 1 day. On an average day, your firm receives 90 checks with an average value of $105 each. The daily interest rate on Treasury bills is.03 %. The bank charge per check would be $.25. What is the anticipated daily cost of the lockbox system?

A) $2.70
B) $2.84
C) $12.60
D) $22.50
E) $26.25