7. The Garcia Corporation is trying to decide whether to switch to a bank that will accommodate electronic funds transfers from Garcia s customers. Garcia's financial manager believes the new system would decrease its collection float by as much as four days. The new bank would require a compensating balance of $6,000,000, whereas its present bank has no compensating balance requirement. Additionally, the new bank will require a fixed annual fee of $200,000 each year to service the account. Garcia 's average daily collections are $2,000,000, and it can earn 6% on its short-term investments. Should Garcia make the switch? (Assume the compensating balance at the new bank will be deposited in a noninterest earning account.)