Question: Problem 1 9 - 0 3 Costs of Float [ LO 1 ] Purple Feet Wine, Inc., receives an average of $ 2 1 ,
Problem Costs of Float LO
Purple Feet Wine, Inc., receives an average of $ in checks per day. The delay in clearing is typically three days. The current interest rate is 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? Round your answer to decimal places, eg;
tableaCompany's float,bMaximum payment,cMaximum daily fee,
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