Roze Corporation Is Investigating a Lockbox System to Reduce Its

Roze Corporation is investigating a lockbox system to reduce its collection time. It has determined that on average, there are 405 payments with an average value of $1,200 each. If a lockbox system
Is implemented, the lockbox fee per transaction will be $0.65. If the collection time can be reduced
By 4 days, and the daily interest on money market securities is .03%, then determine the net cash
flow per cheque from adopting the system.

A) $1.09
B) $0.99
C) $0.89
D) $0.79
E) $0.69