Your neighbour goes to the post office once a month and picks up two cheques, one for

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Your neighbour goes to the post office once a month and picks up two cheques, one for $14,000 and one for $5,000. The larger cheque takes four days to clear after it is deposited; the smaller one takes 3 days. Assume 30 days in a month.

a. What is the total float for the month?

b. What is the average daily float?

c. What are the average daily receipts and weighted average delay?

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Fundamentals of Corporate Finance

ISBN: 978-0071051606

8th Canadian Edition

Authors: Stephen A. Ross, Randolph W. Westerfield

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Question Posted: Jun 26, 2019 09:35 AM

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Your neighbour goes to the post office once a month and picks up two cheques, one for

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a Total float 414000 35000 Total float 71000 b The average daily ...View the full answer

Fundamentals of Corporate Finance

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