Burke Corporation Is Investigating a Lockbox System to Reduce Its

Burke Corporation is investigating a lockbox system to reduce its collection time. It has determined that on average, there are 900 payments with an average value of $425 each. If a lockbox system is implemented, the lockbox fee per transaction will be $0.15. If the collection time can be reduced by 4 days, and the daily interest on money market securities is.02%, then determine net present value of adopting the system.

A) $875,000
B) $865,000
C) $855,000
D) $845,000
E) $835,000