2. Apply the following information as needed in this question:

Payment initiation float: 30 days Mail float: 3 days Processing float: 1.5 days Presentation (clearing) float: 2 days Sales (365-day year): $100m Cost of goods sold: 55% of sales Opportunity cost of funds (iOPP): 6.5%

a. What is the annual economic value of payment float and disbursement float? b. Suppose a policy being considered will increase mail float by 2 days and also increase presentation (clearing) float by 1 day. Other things equal, what will be the new values for both payment and disbursement float?

Apply the following information as needed in this question Payment initiation float: Mail float: Processing float: Presentation (clearing) float: Sales (365-day year): Cost of goods sold: Opportunity cost of funds (IOPP): 30 days 3 days 1.5 days 2 days $100m 55% of sales 6.5% a. What is the annual economic value of payment float and disbursement float? b. Suppose a policy being considered will increase mail float by 2 days and.also increase presentation (clearing) float by 1 day. payment and disbursement float? Other things equal, what will be the new values for both