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Suppose that A sells $5 million monthly to subsidiary B and $2 million monthly to subsidiary C, B sells $3 million monthly to A and

Suppose that A sells $5 million monthly to subsidiary B and $2 million monthly to subsidiary C, B sells $3 million monthly to A and $1 million monthly to C, and C sells $5 million monthly to A and $3 million to B. Based on this information, bilateral netting will reduce intercompany payment flows by _________.

$4 million

$3 million

$12 million

None of the above

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