Lancaster Wine Inc. receives an average of $19,000 in cheques per day. The delay in clearing is

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Lancaster Wine Inc. receives an average of $19,000 in cheques per day. The delay in clearing is typically three days. The current interest rate is .017% per day.

a. What is the company’s collection float?

b. What is the most Lancaster 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: 9781259654756

10th Canadian Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan, Gordon Roberts, J. Ari Pandes, Thomas Holloway

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Question Posted: Nov 21, 2022 03:34 AM

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Lancaster Wine Inc. receives an average of $19,000 in cheques per day. The delay in clearing is

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a The collection float is the average daily checks received times the average number of ...View the full answer

Fundamentals Of Corporate Finance

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