Lockbox. It typically takes Lawrence Corporation 8 days to receive and deposit customer remissions. Lawrence is considering a lockbox system and anticipates that the system will reduce the float time...

Lockbox. It typically takes Lawrence Corporation 8 days to receive and deposit customer remissions. Lawrence is considering a lockbox system and anticipates that the system will reduce the float time to 5 days. Average daily cash receipts are $220,000. The rate of return is 10 percent

(a) What is the reduction in cash balances associated with implementing the system? (b) What is the rate of return associated with the earlier receipt of the funds? (c) What should be the maximum monthly charge associated with the lockbox proposal?