Rosewell International Receives an Average of 268 Checks a Day

Rosewell International receives an average of 268 checks a day with an average amount per check of $820. The firm is considering a lockbox system which it anticipates will reduce the average collection time by 1.4 days. The bank charges $0.21 a check for this service. The daily interest rate on Treasury bills is 0.02 percent. What is the net present value of this lockbox arrangement?

A) -$61,640
B) -$26,264,
C) $26,264
D) $30,820
E) $61,640