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The Blue Star Generally Receives Only 3 Checks a Month

question 71

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The Blue Star generally receives only 3 checks a month.The check amounts and the collection delay for each check are shown below.Given this information, what is the amount of the average daily float? Assume every month has 30 days. The Blue Star generally receives only 3 checks a month.The check amounts and the collection delay for each check are shown below.Given this information, what is the amount of the average daily float? Assume every month has 30 days.   A) $971.43 B) $1,376.67 C) $3,351.33 D) $5,666.67 E) $6,800.00

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Definitions:

Cost of Capital

The rate of return that a business must earn on its investment projects to increase or maintain its value, encompassing the cost of debt and equity.

Real Option

The flexibility to make decisions on investments, such as the timing of projects or the expansion of operations, based on the evolution of market conditions.

Expansion Option

The opportunity or ability to invest additional capital in a project, based on its successful performance or other factors.

NPV

Net present value, a calculation that reflects the present value of future cash flows minus initial investments, used to assess the profitability of a project.

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