Mathematics · Cash Management

A corporate entity currently manages its collections manually across 20 different cities. On average, the company receives 500 checks per day, and each check has an average value of 40,000 INR. The current system involves a total float of 5 days before the funds are available in the central account. A bank has proposed a specialized Cash Management Service (CMS) that will reduce the total float to 2 days. The bank will charge a transaction fee of 1.50 INR per check and an annual maintenance fee of 30,000 INR for the platform. If the company's opportunity cost of funds is 10% per annum, calculate the net annual benefit to the company from implementing this CMS. Assume a 360-day year.