No More Books Corporation has an agreement with Floyd Bank, whereby the bank handles $7 million...

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No More Books Corporation has an agreement with Floyd Bank,whereby the bank handles $7 million in collections a day andrequires a $450,000 compensating balance. No More Books iscontemplating canceling the agreement and dividing its Easternregion so that two other banks will handle its business. Banks Aand B will each handle $3.5 million of collections a day, and eachrequires a compensating balance of $300,000. No More Books’financial management expects that collections will be acceleratedby one day if the Eastern region is divided.
What is the NPV of accepting the system? (Do not roundintermediate calculations and enter your answer in dollars, notmillions of dollars, rounded to the nearest whole number, e.g.,1,234,567.)
What will be the annual net savings? Assume that the T-billrate is 2.6 percent annually. (Do not round intermediatecalculations and enter your answer in dollars, not millions ofdollars, rounded to the nearest whole number, e.g.,1,234,567.)

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No More Books Corporation has an agreement with Floyd Bank,whereby the bank handles $7 million in collections a day andrequires a $450,000 compensating balance. No More Books iscontemplating canceling the agreement and dividing its Easternregion so that two other banks will handle its business. Banks Aand B will each handle $3.5 million of collections a day, and eachrequires a compensating balance of $300,000. No More Books’financial management expects that collections will be acceleratedby one day if the Eastern region is divided.What is the NPV of accepting the system? (Do not roundintermediate calculations and enter your answer in dollars, notmillions of dollars, rounded to the nearest whole number, e.g.,1,234,567.)What will be the annual net savings? Assume that the T-billrate is 2.6 percent annually. (Do not round intermediatecalculations and enter your answer in dollars, not millions ofdollars, rounded to the nearest whole number, e.g.,1,234,567.)