Bavarian Brew Float Bavarian Brew Receives About 350 Checks a Day with an Day

question 34

Multiple Choice

Bavarian Brew Float
Bavarian Brew receives about 350 checks a day with an average check size of $550. Currently customer’s payments spend 2 days in the mail. Once a check is received it takes about 1.5 days to process it and another 4 days to clear the banking system. The firm’s opportunity cost is 10%. Assume a 365-day year.

-What is the availability float of Bavarian Brew?

• A) 2 days
• B) 4 days
• C) 7.5 days
• D) 1.5 days

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Career

The pursuit of a lifelong ambition or the general course of progression towards lifelong goals in professional life.

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