Assume that liquid funds can be invested to yield 12% - 3443

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Assume that liquid funds can be invested to yield 12%. If annual remittance checks total $2 billion, what is it worth for the firm to reduce float by 1 day?

a. $54,833

b. $657,534

c. $1,000,000

d. $24,000,000 

Solution Description

Assume that liquid funds can be invested to yield 12%. If