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14. Hershey has a $5 million revolving credit agreement. Hershey predicts it will borrow $2.25 million on average at 6.75% annually. In addition, it must

14. Hershey has a $5 million revolving credit agreement. Hershey predicts it will borrow $2.25 million on average at 6.75% annually. In addition, it must maintain an additional compensating balance at the bank of $200,000. The commitment fee is .75% of any unused funds. Calculate the AFC on the revolving credit agreement.

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