Whitmer inc. sells to customers all over the u.s., and all receipts come in to it's headquarteres in New York City. The firm's average accounts receivable balance is $2.5 million, and they are financed by a bank loan at an 6.5% annual interest rate. the Firm is considering setting up a regional lockbox system to speed up collections, and it believes this would reduce by 20%. If the annual cost is $15,000, what pre-tax net annual savings would be realized?
A. $21,875
B. $20,650
C. $17,500
D. $18,375
E. $21,175