Agatha Concrete Company has received an offer by its bank to manage its cash at a cost of $36,000 per year. Under the proposed cash management, the firm can reduce the cash required on hand by $150,000. Since the bank is also doing a lot of record-keeping, the firms administrative cost would decrease by $1,000 per month.

Assuming the firm's opportunity cost is 12 percent, what is the annual benefit to the firm from the reduced cash balances and decreased administrative costs, ignoring the bank's management fee?

	a.	$12,500
	b.	$30,000
	c.	$19,000
	d.	$162,000
	e.	$24,500