Your Firm Has an Average Receipt Size of $60

Your firm has an average receipt size of $60. A bank has approached you concerning a lockbox service that will decrease your total collection time by 1 day. You typically receive 28,000 checks per day. The daily interest rate is 0.016 percent. What is the NPV of the lockbox project if the bank charges a fee of $210 per day?

A) $367,500
B) $427,500
C) $903,350
D) $1,412,500
E) $1,680,000