You Are Considering Implementing a Lockbox System for Your Firm

You are considering implementing a lockbox system for your firm.The system is expected to reduce the average collection time by 2.8 days.On an average day,your firm receives 2,419 checks with an average value of $1,287 each.The daily interest rate on Treasury bills is 0.016 percent.The bank charge per check is $0.30.What is the net present value of this lockbox arrangement?

A) -$4,535,625
B) -$2,611,575
C) $187,419
D) $4,181,483
E) $13,252,733