Question

Purple Feet Wine Inc. receives an average of $16,000 in cheques per day. The delay in clearing is typically three days. The current interest rate is 0.018 percent per day.
a. What is the company’s float?
b. What is the most Purple Feet should be willing to pay today to eliminate its float entirely?
c. What is the highest daily fee the company should be willing to pay to eliminate its float entirely?


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  • CreatedJune 17, 2015
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