The Saban Corporation is trying to decide whether to switch to a bank that will accommodate electronic funds transfers from? Saban's customers.? Saban's financial manager believes the new system would decrease its collection float by as much as 5 days. The new bank would require a compensating balance of $25,000?, whereas its present bank has no compensating balance requirement.? Saban's average daily collections are $9,000?, and it can earn 8% on its? short-term investments. Should Saban make the? switch? (Assume the compensating balance at the new bank will be deposited in a? non-interest earning? account.) Should Saban make the? switch? ?

(Select the best choice? below.)

A. ?Yes, Saban would have an additional $20,000 to invest.

B. ?Yes, Saban would have an additional $45,000 to invest.

C. ?No, Saban's cash flows will decrease by the required balance of $25,000.

D. ?No, Saban's cash flows will increase by $9,000 but decrease by the required balance of $25,000.