Management of Radker Corp. is considering a lockbox system.
The bank will charge $10,000 annually for the service,
which will save the firm approximately $5,000 in processing
costs. The lockbox system will reduce the float for cash receipts
by three days. Assuming that the average daily receipts are equal
to $100,000, and short-term interest costs are 5%, calculate the
benefit or loss from adopting the lockbox system.