The Mesa Bank Is Offering Your Firm the Free Use

The Mesa Bank is offering your firm the free use of their lockbox services.They estimate that you can reduce your average mail time by 2 days and they can save you a combined clearing and processing time of 1.5 days by putting the checks into the clearing system sooner.Your firm receives 320 checks a day with an average value of $2,500 each.The current T-Bill rate is .015 percent per day.Assume a 365-day year.What is the annual amount of income your firm can earn if it installs this service?

A) $15,300
B) $14,800
C) $16,400
D) $153,300
E) $148,700