Purple Feet Wine, Inc., receives an average of ($7,500) in checks per day. The delay in clearing

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Purple Feet Wine, Inc., receives an average of $$7,500$ in checks per day. The delay in clearing is typically six days. The current interest rate is .055 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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Fundamentals Of Corporate Finance

ISBN: 9780072313000

5th Edition

Authors: Stephen A Ross, Randolph W Westerfield

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Question Posted: May 24, 2024 03:02 AM

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Purple Feet Wine, Inc., receives an average of ($7,500) in checks per day. The delay in clearing

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Fundamentals Of Corporate Finance

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