Purple Feet Wine, Inc., receives an average of $17,000 in checks per day. The delay in clearing

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Purple Feet Wine, Inc., receives an average of $17,000 in checks per day. The delay in clearing is typically three days. The current interest rate is .017 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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Fundamentals of corporate finance

ISBN: 978-0078034633

10th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Question Posted: Mar 13, 2014 08:56 AM

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Purple Feet Wine, Inc., receives an average of $17,000 in checks per day. The delay in clearing

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Fundamentals of corporate finance

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