General Products writes checks that average $28,000 daily. These checks take an average of 6 days...

 

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General Products writes checks that average $28,000 daily. These checks take an average of 6 days to clear. It receives payments that average $30,000 daily. It takes 3 days before these checks are available to the firm. What would be the annual savings if General Products could obtain access to the payments it receives within 2 days? The interest rate is 6% per year. (Do not round intermediate calculations.) Annual savings General Products writes checks that average $28,000 daily. These checks take an average of 6 days to clear. It receives payments that average $30,000 daily. It takes 3 days before these checks are available to the firm. What would be the annual savings if General Products could obtain access to the payments it receives within 2 days? The interest rate is 6% per year. (Do not round intermediate calculations.) Annual savings

Answer rating: 100% (QA)

To calculate the annual savings we need to find the difference between the ... View the full answer