Mountaintop Inns, a Kentucky company, has determined that a majority of its customers are located in the Pennsylvania area.It therefore is considering using a lockbox system offered by a bank located in Pittsburgh, Pennsylvania.The bank has estimated that use of the system will reduce collection time by one day.In addition to the variable charge shown below, there is also a fixed charge of $4,320 per year for the lockbox system.Assume a year has 365 days.What is the NPV of the lockbox system given the following information?

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The Answer of Mountaintop Inns, a Kentucky company, has determined that a majority of its customers are located in the Pennsylvania area.It therefore is considering using a lockbox system offered by a bank located in Pittsburgh, Pennsylvania.The bank has estimated that use of the system will reduce collection time by one day.In addition to the variable charge shown below, there is also a fixed charge of $4,320 per year for the lockbox system.Assume a year has 365 days.What is the NPV of the lockbox system given the following information?

Mountaintop Inns, a Kentucky Company, Has Determined That a Majority