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Zero-balance account Union Company is considering establishment of a zero-balance account. The firm currently maintains an average balance of $418,000 in its disbursement account. As

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Zero-balance account Union Company is considering establishment of a zero-balance account. The firm currently maintains an average balance of $418,000 in its disbursement account. As compensation to the bank for maintaining the zero-balance account, the firm will have to pay a monthly fee of $1,190 and maintain a $309,000 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 12.5% The current opportunity cost is $. (Round to the nearest dollar.) The zero-balance account opportunity cost is $ (Round to the nearest dollar.) is V than the opportunity cost of the current account, Therefore, the zero-balance proposal. (Select from the The opportunity cost of the zero-balance account proposal, drop-down menus.)

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