Your firm has an average receipt size of $145. A bank has approached you conve

Your firm has an average receipt size of $145. A bank has approached you converning a lockbox service that will decrease your total collection time by one day.
You typically receive 6100 checks per day. The daily interest rate is 0.017 percent. The bank charges a lockbox fee of $115 per day.

1. What is the NPV of accepting the lockbox agreement? (round answer to 2 decimal places e.g. 32.16)

NPV= $?

2. What would the net annual savings be if the service were adopted? (use 365 days a year do not round intermediate calculations and round your final answer to
2 decimal places e.g. 32.16)

Net annual savings= $?

Please show all work and clearly lable the answers as follows: NPV= $? and Net annual savings= $?

Thanks