$($B$7$a$)($Lockbox$)$ A Columbus bank has made a

proposal to operate a lockbox for you. Checks

cleared through the lockbox amount to $$20,000$ per

day, and the lockbox will make these funds

available to you $2\mathrm{.}5$ days faster.

If the Columbus bank will provide the lockbox

services in exchange for a $$30,000$ compensating

balance, is its proposal attractive?

Yes, the net reduction in float is $$10,000.$

Yes, the net reduction in float is $$15,000$

Yes, the net reduction in float is $$20,000.$

No the net increase in float is $$10,000.$