General Products writes checks that average $20,000 daily. These checks take an average of 6 days to

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General Products writes checks that average $20,000 daily. These checks take an average of 6 days to clear. It receives payments that average $22,000 daily. It takes 3 days before these checks are available to the firm. What would be General Products' annual savings if it could obtain access to the payments it receives within 2 days? The interest rate is 6% per year.

General Products writes checks that average $20,000 daily. These checks


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Fundamentals of Corporate Finance

ISBN: 978-0078034640

7th edition

Authors: Richard Brealey, Stewart Myers, Alan Marcus

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