Question: Should it adopt the proposed lockBox syslel! 6 P15-16 Zero-balance account Union Company is considering establishment of a zero-bal its ance account. The firm currently

Should it adopt the proposed lockBox syslel! 6 P15-16 Zero-balance account Union Company is considering establishment of a zero-bal its ance account. The firm currently maintains an average balance of $420,000 in disbursement account. As compensation to the bank for maintaining the zero-bal account, the firm will have to pay a monthly fee of $1,000 and maintain a $3000% 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 recommendati to the firm, assuming that it has a 12% opportunity cost. Personal Finance Problem LG P15-17 Management of cash halance Aleris M

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