8. Float. General Products writes checks that average $20,000 daily. These checks take an aver- age of
Question:
8. Float. General Products writes checks that average $20,000 daily. These checks take an aver- age of 6 days to clear. It receives payments that average $22,000 daily. It takes 3 days before these checks are available to the firm. (L06)
a. Calculate the firm's net float due to payment delays.
b. What would be General Products's annual savings if it could obtain access to the payments it receives within 2 days? The interest rate is 6% per year.
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9780073382302
6th Edition
Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus
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