STATE FARM Company supplies components to auto repair shops. These shops send their checks via remittance firms. On the average, STATE FARM receives the checks 2 days after the shops mail them, it processes the checks for 2 days, and then subsequent deposited to its local bank, where it will clear after 24 hours. The average daily collections: P40,000. REQUIRED: a. How much is the average daily collection float? b. If cash can be readily invested in instruments earning 5%, how much is the daily cost of the float? c. If STATE FARM can reduce the processing time of its checks by a day, and deposit it immediately, how much can it save in a year