The Polk Corporation is trying to decide whether to switch to a bank that will accommodate electronic funds transfers from Polk's customers. Polk's financial manager believes decrease its collection float by as much as 7 days. The new bank would require a compensating balance of $23 000, whereas its present bank has no compensating balance average daily collections are $11 000, and it can earn 8% on its short-term investments. Should Polk make the switch? (Assume the compensating balance at the new bank v a non-interest-earning account.) As a result of using the electronic funds transfer system, the amount of collection float freed up by the loan is $ (Round to the nearest dollar.)

Please help! It keeps telling me that I have the wrong numbers, but I can't figure out where I went wrong. (Table is attached) I only need help with questions 3-7.    On January 1, 2021, Labtech Circuits borrowed $192,600 from First Bank by issuing a three-year, 8% note, payable on December 31, 2023. Labtech wanted to hedge the risk that general interest rates will decline, causing the fair value of its debt to increase. Therefore, Labtech entered into a three-year interest rate swap agreement on January 1, 2021, and designated the swap as a fair value hedge. The agreement called for the company to receive payment based on an 8% fixed interest rate on a notional amount of $192,600 and to pay interest based on a floating interest rate tied to LIBOR. The contract called for cash settlement of the net interest amount on December 31 of each year. Floating (LIBOR) settlement rates were 8% at inception and 9%, 7%, and 7% at the end of 2021, 2022, and 2023, respectively. The fair values of…

The Berti Corporation is trying to decide whether to switch to a bank that will accommodate electronic funds transfers from Berti 's customers. Berti 's financial manager believes the new system would decrease its collection float by as much as five days.  The new bank would require a compensating balance of $4,000,000, whereas its present bank has no compensating balance requirement.  Additionally, the new bank will require a fixed annual fee of $200,000 each year to service the account. Berti 's average daily collections are $2,000,000, and it can earn 6% on its short-term investments.  Should Berti make the switch? (Assume the compensating balance at the new bank will be deposited in a non-interest earning account.)

. No. 1. Abbott Private Limited wants to purchase an equipment worth $2650,000. However, the firm is in short of funds and thus would be looking to borrow the amount from a bank. The bank manager has offered two different types of loans i.e. 14.16% interest rate for 50 years with quarterly installments and 14% interest rate for 50 years with monthly installments. Being the finance manager of the company, you have been given a task to calculate the quarterly and monthly installment amounts as well as make a choice between both the loans i.e. which loan is to be opted and why?