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.
0.45 = D × ($78 million)(.05)
(95,
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