Invention, Inc

Invention, Inc. receives an average of 250 checks a day. The average amount per check is $450. The firm is considering a lockbox system which it anticipates will reduce the average collection time
By 3 days. The bank charges $.15 a check for this service. The daily interest rate on Treasury bills is
) 01 percent. What is the net present value of this lockbox arrangement?

A) -$37,500.00
B) $506.25
C) $1,125.00
D) $112,500.00
E) $300,000.00