1. Maximizing deposit float. Brown Company has an average daily collection of $ 20 Million. The company is considering accelerating its collections by 3 days by spending an annual amount of $ 24,000 on a new system. The effective interest rate of marketable securities is 8%. How much would the company benefit from accelerating the collections?

2. Optimizing payment float. Purple Bloom Company is considering the option of stretching its payment period to suppliers by issuing checks every Friday of the month instead of its current practice of issuing checks twice a week. This option would delay the payment by 3 days on average. The company's average daily payment is $ 400,000, and the prevailing benchmark rate of the 90-day T-Bills is 8%. How much is the net benefit the company may generate from the alternative?