No More Books Corporation has an agreement with Floyd whereby the bank handles

No More Books Corporation has an agreement with Floyd whereby the bank handles $3.2 million in collections a day and requires a $260000 compensating balance.
No More Books is contemplating cancelling the agreement and dividing its eastern region so that two other banks will handle its business. Banks A and B will
each handle $1.6 million of collections a day and each requires a compensating balance of $110000. No More Books financial management expects that
collections will be accelerated by one day if the eastern region is divided.

1. What is the NPV of accepting the system?

NPV=$

2. What will be the annual net savings? Assume that the T-bill rate is 2.6 percent annually.

Annual net savings=$

Please show complete work with answers clearly marked. NPV= $ and Annual net savings= $