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I have solved the question below until its last part where my answer is wrong despite following the equation. This may be due to a
I have solved the question below until its last part where my answer is wrong despite following the equation. This may be due to a rounding error where all the decimals must be used.
A mail-order firm processes 4,900 checks per month. Of these, 60 percent are for $39 and 40 percent are for $71. The $39 checks are delayed two days on average; the $71 checks are delayed three days on average. Assume 30 days in a month. a-1 What is the average daily collection float? Average daily collection float s 2 1560 a-2 How do you interpret your answer? On average, there is $ 21560 that is uncollected and not available to the firm. b-1 What is the weighted average delay? (Round your answer to 2 decimal places. (e.g., 32.16)) Weighted average delay 2.55 days b-2 Calculate the average daily float. Average daily float $ 21574.7 c. How much should the firm be willing to pay to eliminate the float? Maximum payment 21560 d. If the interest rate is 5 percent per year, calculate the daily cost of the float. (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Daily cost of the float $ 2.88 e. How much should the firm be willing to pay to reduce the weighted average float to 1.5 days? Maximum payment $Step by Step Solution
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