It takes Cookie Cutter Modular Homes Inc. about six days to receive and deposi

It takes Cookie Cutter Modular Homes Inc. about six days to receive and deposit checks from customers. Cookie Cutter%u2019s management is
considering a lockbox system to reduce the firm%u2019s collection times. It is expected that the lockbox system will reduce receipt and deposit
times to three days total. Average daily collections are $131000 and the required rate of return is 6 percent per year. Assume 365 days per
year.

What is the reduction in outstanding cash balances as a result of implementing the lockbox system?

What is the daily dollar return that could be earned on these savings? (Round your answer to 2 decimal places.
(e.g. 32.16))

What is the maximum monthly charge Cookie Cutter should pay for this lockbox system if the payment is due at the end of the month? (Round your answer to 2 decimal places. (e.g. 32.16))

What is the maximum monthly charge Cookie Cutter should pay for this lockbox system if the payment is due at the beginning of the month?
(Round your answer to 2 decimal places. (e.g. 32.16))