You have $ 1 0 , 0 0 0 in your checking account. You just deposited a
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Question:
You have $ in your checking account. You just deposited a check for $ and wrote a check for $
a What is the disbursement float?
b What is the collection float?
c What is the net float?
d What is your book balance?
e What is your available balance?
Suppose you mail a check each month for $ and it takes days to reach its destination, days to process, and day before the bank makes the cash available. What is the average daily float assuming day months
Suppose the average daily float is $ million with a weighted average delay of days.
a What is the total amount unavailable to earn interest?
b What is the NPV of a project that could reduce the delay by days if the cost is $ million?
A proposed single lockbox system will reduce collection time days on average.
Daily interest rate on Tbills
Average number of daily payments to the lockbox is
Average size of payment is $
The processing fee is $ per check plus $ to wire funds each day.
What is the maximum investment that would make this lockbox system acceptable?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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