Currently, Your Firm Requires 3 Days to Process the Cheques

Currently, your firm requires 3 days to process the cheques received from customers. The average mail time associated with these payments is 4 days and the cheque clearing time is 1 day. If your firm adopts a lockbox system, the mail time will be cut in half. In addition, if employees are reassigned, cheques could be processed in 1 day. How long will your collection time be if both the lockbox system and the job reassignments are implemented?

A) 2.5 days
B) 3.0 days
C) 4.0 days
D) 5.5 days
E) 7.0 days