Union Company is considering establishment of a zero-balance account. The firm currently maintains an average balance of $423,000 in its disbursement account. As compensation to the bank for maintaining thezero-balance account, the firm will have to pay a monthly fee of $1,130 and maintain a $298,000 non-interest-earning deposit in the bank. The firm currently has no other deposits in the bank. Evaluate the proposed zero-balance account, and make a recommendation to the firm, assuming that it has an opportunity cost of 11.1%

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