On an average day, Wilson & Wilson receives $7,800 in checks from customers. These checks clear the

Question:

On an average day, Wilson & Wilson receives $7,800 in checks from customers. These checks clear the bank in an average of 1.7 days. The applicable daily interest rate is 0.022% (not 2.2%). What is the highest daily fee this firm should pay to completely eliminate its collection float? Assume each month has 30 days.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Managing Business Process Flows Principles of Operations Management

ISBN: 978-0136036371

3rd edition

Authors: Ravi Anupindi, Sunil Chopra, Sudhakar Deshmukh, Jan Van Mieg

Question Posted: