Paper , Order, or Assignment Requirements

Problem Set
Please show your working and present your answers on the numbered sequence in as clear a manner as possible. (Minimum 2 full pages)

Questions 1
Your firm has an average receipt size of $108. A bank has approached you concerning a lockbox service that will decrease your collection time by two days. You typically receive 8,500 cheques per day. Daily interest rate is .016%. If the bank charges a fee of $225 per day, should the lockbox  project be accepted. What would net annual savings be if the service was adopted?