You are considering implementing a lockbox system for your firm. The system is expected to reduce the collection time by 3 days. On an average day, your firm receives 1,380 checks with an average value of $780 each. The daily interest rate on Treasury bills is 0.015 percent. The bank charge per check would be $.34. What is the net present value of this lockbox arrangement?
a. $101,200
b. $99,176
c. $77,924
d. $59,708
e. $89,056