28.13 The Miller Company has an agreement with the First National Bank by which the bank handles $4 million in collections each day and requires a $500,000 compensating balance. Miller is contemplating canceling the agreement and dividing its eastern region so that two other banks will handle its business. Banks 1 and 2 will each handle $2 million of collections each day, requiring a compensating balance of $300,000. Miller’s financial management expects that collections will be accelerated by one day if the eastern region is divided. The T-bill rate is 7 percent. Should the Miller Company implement the new system? What will the annual net savings be?