Costs of Float Purple Feet Wine, Inc., receives an average of $16,000 in checks per day. The

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Costs of Float Purple Feet Wine, Inc., receives an average of $16,000 in checks per day. The delay in clearing is typically three days. The current interest rate is

.018 percent per day.

a. What is the company’s float?

b. What is the most Purple Feet should be willing to pay today to eliminate its float entirely?

c. What is the highest daily fee the company should be willing to pay to eliminate its float entirely?

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Corporate Finance With Connect Access Card

ISBN: 978-1259672484

10th Edition

Authors: Stephen Ross ,Randolph Westerfield ,Jeffrey Jaffe

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Question Posted: Jul 11, 2024 02:01 AM

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Costs of Float Purple Feet Wine, Inc., receives an average of $16,000 in checks per day. The

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Corporate Finance With Connect Access Card

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