Question
Purple Feet Wine, Inc., receives an average of $17,500 in checks per day. The delay in clearing is typically four days. The current interest rate
Purple Feet Wine, Inc., receives an average of $17,500 in checks per day. The delay in clearing is typically four days. The current interest rate is .018 percent per day.
a. | What is the company's float? (Do not round intermediate calculations.) |
Company's float | $ |
b. | What is the most Purple Feet should be willing to pay today to eliminate its float entirely? (Do not round intermediate calculations.) |
Maximum payment | $ |
c. | What is the highest daily fee the company should be willing to pay to eliminate its float entirely? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
Maximum daily charge | $ |
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