Transcribed Image Text
Paper Submarine Manufacturing is investigating a lockbox systemto reduce its collection time. It has determined the following: Average number of payments per day405 Average value of payment$995 Variable lockbox fee (per transaction)$.30 Daily interest rate on money market securities.068% The totalcollection time will be reduced by three days if the lockbox systemis adopted. a.What is thePV of adopting the system? (Do not round intermediatecalculations and round your answer to the nearest whole number,e.g., 32.)b.What is the NPVof adopting the system? (Do not round intermediatecalculations and round your answer to the nearest whole number,e.g., 32.)c.What is the netcash flow per day from adopting the lockbox system? Per check?(Do not round intermediate calculations and round youranswers to 2 decimal places, e.g., 32.16.)