The Essex Company Found That an Average of 10 Days

The Essex Company found that an average of 10 days elapses between when customer payments are received and the deposited funds clear the customer's bank and become usable by the firm.Essex's annual sales are $240 million (Assume 365 days per year when converting from annual data to daily data or vice versa.) Suppose that Essex is able to reduce the time required to process customer payments by 4 days through more efficient payment processing methods.Given that these additional funds can be used to reduce the firm's outstanding bank loans (10% interest rate) , what is the annual pretax savings in interest expense?

A) $263,014
B) $96,000,000
C) $66,667
D) $2,630,149