Business, 14.05.2020 23:57 genyjoannerubiera

Bird's Eye Treehouses, Inc., a Kentucky company, has determined that a majority of its customers are located in the Pennsylvania area. Therefore, it is considering using a lockbox system offered by a bank located in Pittsburgh. The bank has estimated that use of the system will reduce collection time by 1.5 days. Assume 365 days a year.
Average number of payments per day 700
Average value of payment $650
Variable lockbox fee (per transaction) $.10
Annual interest rate on money market securities 4.1%
Required:
a. What is the NPV of the new lockbox system? (Do not round intermediate calculations and round your answer to 2 decimal

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