Question

Purple Feet Wine, Inc., receives an average of $13,000 in checks per day. The delay in...

Purple Feet Wine, Inc., receives an average of $13,000 in checks per day. The delay in clearing is typically three days. The current interest rate is 0.017 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 $   

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