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A company is currently waiting for 4 days to collect money.Through a lock box arrangement, the funds could be collected thenext day (1 day float). The company is considering using 4 lockboxes strategically located in areas where it has clusters ofcustomers. The company expects to have 5,000 checks processed perday, per lockbox, and the average amount of each check is $520. Thelockbox arrangement has a fee of $0.463 per check. There isadditional charge $25 at the end of each day for a wire transfer ofthe collected balance to the company's bank. The hurdle return forthe company is .03% per day.1. How much is the benefits from lockboxes?2. How much is the PV of the lockbox proposal?3. How much is the NPV for the lockbox proposal?