Tollhouse plc has a large overdraft which is expected to continue. Its annual sales are £10m, spread evenly through the year - the same amount in each week. The interest rate on the overdraft is 11 per cent. The present policy is to pay into the bank the weekly receipts from customers each Friday. However, a new director has raised the question of whether it would be better to pay in on Mondays as well as Fridays especially in the light of the fact that Monday mornings' receipts are three times the level of those of the other days of the working week. No cash is received on Saturdays or Sundays. It costs £35 each time money is paid into the bank account and all daily cash inflows arrive before the regular paying-in time of 3 p.m. Ignore taxation and consider which of the following four policies is the best for Tollhouse:
a. Continue to pay in on Fridays.
b. Pay in on Mondays and Fridays.
c. Pay in every day of the week.
d. Pay in on Mondays and another selected day.