Knob, Incorporated, is a nationwide distributor of furniture hardware. The company now uses a central billing system for credit sales of \$198.00 million annually. First National, Knob's principal bank, offers to establish a new concentration banking system for a flat fee of $150,000 per year. The bank estimates that mailing and collection time can be reduced by four days. Assume a 360 day year. a. By how much will Knob's cash balances be increased under the new system? Note: Enter your answer in dollars not in millions. b. Assume that the borrowing rate is 12%. How much extra interest income will the new system generate if the extra funds are used to reduce borrowing under Knob's line of credit with First National? Note: Enter your answer in dollars not in millions. c. Calculate the total annual cost of the old system if collection costs under the old system are $45,000 per year? Note: Enter your answer in dollars not in millions. d. Should Knob accept First National's offer