Question Number 2 (5 Marks) Crown Company, which can earn 9 percent on money market instruments, currently has a lockbox arrangement with Azizi Bank for its Southern customers. The bank handles $ 4 million a day in return for a compensating balance of $ 3 million. a Crown Company has discovered that it could divide the Southern region into a south western region (with $2 million a day in collections, which could be handled by Maiwand bank for a 52 million compensating balance) and a southeastern region (with $2 million a day in collections, which could be handled by Bakhtar bank by a $2 million compensating balance). In each case, collections would be one day quicker than with the Azizi Bank arrangements. What would be the annual savings (or cost) of dividing the Souther region? b. In an effort to retain the business, the Azizi bank has offered to handle the collections strictly on a fee basis (no compensating balance). What would be the maximum fee the Azizi bank could charge and still retain Crown business? Question Number 2 (5 Marks) Crown Company, which can earn 9 percent on money market instruments, currently has a lockbox arrangement with Azizi Bank for its Southern customers. The bank handles $ 4 million a day in return for a compensating balance of $ 3 million. a Crown Company has discovered that it could divide the Southern region into a south western region (with $2 million a day in collections, which could be handled by Maiwand bank for a 52 million compensating balance) and a southeastern region (with $2 million a day in collections, which could be handled by Bakhtar bank by a $2 million compensating balance). In each case, collections would be one day quicker than with the Azizi Bank arrangements. What would be the annual savings (or cost) of dividing the Souther region? b. In an effort to retain the business, the Azizi bank has offered to handle the collections strictly on a fee basis (no compensating balance). What would be the maximum fee the Azizi bank could charge and still retain Crown business