Purple Feet Wine, Inc., receives an average of $18,600 in checks per day. The delay in clearing

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Purple Feet Wine, Inc., receives an average of $18,600 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 the company 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: 9781265553609

13th Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Question Posted: Aug 24, 2021 06:48 AM

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Purple Feet Wine, Inc., receives an average of $18,600 in checks per day. The delay in clearing

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Companys float Amount of checks p...View the full answer

Fundamentals Of Corporate Finance

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