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Question
Brett's, Inc. is a national distributor of women's apparel. The company expects to receive 95,000 checks during the coming year totaling $78 million. A large bank has offered to install a lock-box system at a charge of $0.45 per processed check. If Brett's, Inc. is able to earn 5 percent before tax on additional funds, what is the minimum amount of total float days that must be saved to make the system worthwhile? Use a 365-day year.Answer
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Related questions
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C) $22,305
D) $24,220
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A) $80,000
B) $84,000
C) $90,000
D) $94,000