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 the present
Value of adopting the system.

A) $1,170,000
B) $1,260,000
C) $1,350,000
D) $1,440,000
E) $1,530,000