Question: Please show work and round to two decimal places. Thank you ! Right click to open image to make larger. Zero-balance account Union Company is

Please show work and round to two decimal places. Thank you ! Right click to open image to make larger.

Zero-balance account Union Company is considering establishment of a zero-balance account. The firm currently maintains an average balance of $412,000 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 $1,080 and maintain a $300,000 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 11.7%. The current opportunity cost is $ . (Round to the nearest dollar.)

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