Purple Feet Wine, Inc., receives an average of $17,500 in checks per day. The de

Question

Purple Feet Wine, Inc., receives an average of $17,500 in checks per day. The delay in clearing is typically four days. The current interest rate is .018 percent per day.

What is the company's float? (Do not round intermediate calculations.)

What is the most Purple Feet should be willing to pay today to eliminate its float entirely? (Do not round intermediate calculations.)

What is the highest daily fee the company should be willing to pay to eliminate its float entirely? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

What is the company's float? (Do not round intermediate calculations.)

Explanation / Answer

c.

What is the highest daily fee the company should be willing to pay to eliminate its float entirely? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

  Maximum daily charge

=(17,500x4)x.00018=12.6 answer

$

c.

What is the highest daily fee the company should be willing to pay to eliminate its float entirely? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

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