Tocor Is Considering the Implementation of a Lockbox Collection System

Tocor is considering the implementation of a lockbox collection system for its mid-western and western sales regions.Sales in those two regions are 30 percent of Tocor's annual sales of $560 million.The lockbox system will cost $187,000 a year and reduce collection time by 3 days.If Tocor could invest any released funds at 10.85 percent, should it use the lockbox system? Assume 365 days per year.

A) Yes, savings of $149,819
B) Yes, savings of $312,397
C) No, loss of $37,181
D) No, loss of $35,100