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 7 days. The new bank would require a compensating balance of $23,000, whereas its present bank has no compensating balance requirement. Saban's average daily collections are $9,300, and it can earn 7.1% 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.)

As a result of using the electronic funds transfer system, the amount of collection float freed up is $___. (Round to the nearest dollar.)

The amount that is immediately available to Saban Corporation is $____. (Round to the nearest dollar.)

Saban should

banks. (Select from the drop-down menu.)