A mail-order firm processes 5,800 checks per month. Of these, 60 percent are for $49 and 40 percent are for $84. The $49 checks are delayed two days on average; the $84 checks are delayed three days on average. Assume 30 days in a month.

d.	If the interest rate is 7 percent per year, calculate the daily cost of the float.

e.	How much should the firm be willing to pay to reduce the weighted average float to 1.5 days?