Zero-balance account of union companyzero-balance account

Reference no: EM13361238

Zero-balance account of Union Company

Zero-balance account Union Company is considering establishment of a zero-balance account. The firm currently maintains an average balance of $420,000 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 $1,000 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 a 12% opportunity cost.

Reference no: EM13361238

Questions Cloud

Grievance and arbitration procedures usually serve the : grievance and arbitration procedures usually serve the needs of labor alone. agree?some people are of the opinion that

Program managment-weighted scoring modeluse a weighted : program managment-weighted scoring modeluse a weighted scoring model to choose between three locations abc for setting

Baxter company work in process solve for missing : baxter company work in process solve for missing amountsbaxter company developed the following data for the current

Research financial report union pacific corporationunion : research financial report union pacific corporationunion pacific corporation financialsreview of financial research

Zero-balance account of union companyzero-balance account : zero-balance account of union companyzero-balance account union company is considering establishment of a zero-balance

Bottom-up approach to managing labor costsevaluate the : bottom-up approach to managing labor costsevaluate the components of a bottom-up approach to managing labor

Question related to labor and employment lawssuppose you : question related to labor and employment lawssuppose you had been asked to testify before the commission on the future

Impact of canals railroads and labor between 1820 and 18601 : impact of canals railroads and labor between 1820 and 18601. compare and contrast the development and impact of the

Labor and overhead variancesat the start of 2012 textile : labor and overhead variancesat the start of 2012 textile express company determined its standard labor cost to be 2.5

User Account

All Pages