BB enterprise process an average of 6250 checks per month, the average payment amount is 35 average processing float is 2 days and average transit float is 3.5 days bb has an annual opportunity cost of funds of 7.4%

what is total Ann cost of bb incurring due to float

suppose a one time expenditure of 10000 could reduce processing float by 1.5 days is this expenditure worthwile

what is the most bb should be willingg to spend as a one time expenditure to eliminate processing float entirely

what is bb daily opportunity cost savings of reducing float by one day?