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Which two options are available when setting up DNS for your bare metal and virtual machine DB Systems?
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NEW QUESTION: 2
A corporation has received proposals from several banks to establish a lockbox system to speed up receipts. The corporation receives an average of 700 checks per day averaging US $1,800 each, and its cost of short-term funds is 7% per year. Assuming that all proposals will produce equivalent processing results and using a 360-day year, which one of the following proposals is optimal for the corporation?
A. A flat fee of US $125,000 per year.
B. A US $0_50 fee per check.
C. A compensating balance of US $1,750,000.
D. A fee of 0.03% of the amount collected.
Answer: C
Explanation:
Multiplying 700 checks by 360 days results in a total of US $252,000 checks per year. Accordingly, at a US $0.50 fee per check, total annual cost is US $126,000 $.50 x $252,000), which is less desirable than the US $125,000 flat fee. Given that the annual collections equal US $453,600,000 $1,800 x 700 x 360), a fee of 0.03% of the amount collected is also less desirable because the annual fee would be US $136,080 .03% x $453,600,000). The br:.3 option is therefore to maintain a compensating balance of US $1,750.000 when the cost of funds is 7%, resulting in a total cost of US $122,500 .07 x $1,750,000).

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