Company should be willing to pay to eliminate float entirely

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Reference no: EM131608372

Purple Feet Wine, Inc., receives an average of $16,000 in checks per day. The delay in clearing is typically three days. The current interest rate is .017 percent per day. a. What is the company's float? Company's float $ b. What is the most Purple Feet should be willing to pay today to eliminate its float entirely? Maximum payment $ c. What is the highest daily fee the company should be willing to pay to eliminate its float entirely? (Round your answer to 2 decimal places, e.g., 32.16.) Maximum daily charge $

Reference no: EM131608372

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