No More Books Corporation has an agreement with Floyd Bank, whereby the bank

handles $$5\mathrm{.}2$ million in collections a day and requires a $$520,000$ compensating

balance. No More Books is contemplating canceling the agreement and dividing its

eastern region so that two other banks will handle its business. Banks A and $B$ will each

handle $$2\mathrm{.}6$ million of collections a day, and each requires a compensating balance of

$$275,000.$ No More Books' financial management expects that collections will be

accelerated by one day if the eastern region is divided.

a$.$ What is the NPV of accepting the system? $($Do not round intermediate calculations

and enter your answer in dollars, not millions of dollars, rounded to the nearest

whole number, e$.$g$.,1,234,567.)$

b$.$ What will be the annual net savings? Assume that the T$-$bill rate

is $2\mathrm{.}5$ percent annually. $($Do not round intermediate calculations and enter your

answer in dollars, not millions of dollars, rounded to the nearest whole number,

e$.$g$.,1,234,567.)$

Answer is complete but not entirely correct.