Suppose the Atherton Fuels Corporation (AFC) currently uses a centralized collection system that has all monthly customer payments remitted to its account at the Twelfth National Bank. For this service, AFC pays a flat monthly service charge of dollar 750. Last week, Natalia Kelly, AFC's treasurer, received the following two offers to process the company's customer payments: Proposal 1: This offer, from Payment Processing Services Inc., proposes to process AFC's monthly payments for a fee of dollar 0.20 per payment and a monthly service charge of dollar 200. Proposal 2: This offer, from First Fidelity Bank, does not impose per-payment fees or monthly service charges; rather, it requires a compensating balance of dollar 100,000 in an account maintained at the bank. AFC receives an average of 55,000 payments per month, and the company earns an average return of 8.00% on any available funds. Help Natalia Kelly complete the following table by calculating the annual cost of each payment-processing proposal: Based on calculations for each proposal, which recommendation and justification is best to give to Natalia Kelly? The best plan, that suggested by First Fidelity Bank, is expected to save approximately dollar 1,000 per year compared with the cost of AFC's current system. The best plan has been proposed by Payment Processing Services Inc.; it is expected to save AFC approximately dollar 4, 180 per year compared with the cost of its current system. The current system should be retained, because its annual cost is lower than the proposed alternatives