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A mail-order firm processes 6500 checks per month. of these, 80% are for $60 and 20% are for $ 95. the $ 60 checks are delayed three days on average. the $95 checks are delayed two days on average. assume 30 days in a month.
1) what is the average daily collection float
2) who much should the firm be willing to pay to eliminate the float
3) if the interest is 4% per year, calculate the daily cost of the float.
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