Brett's,Inc.has received a proposal from its bank to establish a lock-box system to accelerate the receipt of $600 million annually on 900,000 checks.By its own analysis,Brett's,Inc.believes such a system would decrease total float by 3.5 days.If Brett's,Inc.can earn 7 percent before taxes on the released funds,what is the maximum that Brett's,Inc.should be willing to pay the bank per check for the service? Use a 365-day year.

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The Answer of Brett's,Inc.has received a proposal from its bank to establish a lock-box system to accelerate the receipt of $600 million annually on 900,000 checks.By its own analysis,Brett's,Inc.believes such a system would decrease total float by 3.5 days.If Brett's,Inc.can earn 7 percent before taxes on the released funds,what is the maximum that Brett's,Inc.should be willing to pay the bank per check for the service? Use a 365-day year.