An organization has an opportunity to establish a zero balance account system using four different regional banks.

The total amount of the maintenance and transfer fees is estimated to be $6,000 per annum. The organization believes that it will increase the float on its operating disbursements by an average of four days, and its cost of shortterm funds is 4.5%. Assuming the organization estimates its average daily operating disbursements to be $40,000 what decision should the organization make regarding this opportunity?

a. Do not establish the zero balance account system because it results in estimated additional net costs of $6,000.

b. Do not establish the zero balance account system because it results in estimated additional net costs of $1,200.

c. Establish the zero balance account system because it results in estimated net savings of $1,200.

d. Establish the zero balance account system because it results in estimated net savings of $7,200.