Knob, Inc., is a nationwide distributor of furniture hardware. The company now uses a central billing system for credit sales of $223.20 million annually. First National, Knob's principal bank, offers to establish a new concentration banking system for a flat fee of $220,000 per year. The bank estimates that mailing and collection time can be reduced by three days. Assume a 360-day year. a. By how much will Knob's cash balances be increased under the new system? (Enter your answer in dollars not in millions.) Increase in cash balance b. Assume that the borrowing rate is 14% How much extra interest income will the ne system generate i the extra un s are used to reduce onro win under no s ne credit it rs National Enter your answer in dollars not in millions.) Interest savings c. Calculate the total annual cost of the old system if collection costs under the old system are $52,000 per year? (Enter your answer in dollars not in millions.) d. Should Knob accept First National's oftfer? Yes O No