Q3. Viking Industries has an agreement with Vancouver Dominion Bank whereby the bank handles $6 million in collections a day and requires a $375,000 compensating balance. Viking is contemplating cancelling the agreement and dividing its Eastern region so that two other banks will handle its business. Banks A and B will each handle $3 million of collections a day and each requires a compensating balance of $250,000. Viking expects collections will be accelerated by one day of the Eastern region is divided. Should the company proceed with the new system? What will the annual net savings be? Assume thet: bill rate is 1.5% annually