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

question 69

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.
-Bavarian Brew is contemplating implementing a lockbox system.If the system has an annual cost of $60,000,by how many days would the float have to be reduced for the company to implement the system?

• A) 2.52 days
• B) 3.12 days
• C) 3.75 days
• D) 4.74 days

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Definitions:

Stack Overflow

An error that occurs when a program uses more stack memory than is allocated, often resulting in a crash.

Stack Underflow

An error condition that occurs when attempting to remove an item from an empty stack.

Factorial Method

A method, often implemented using recursion, to calculate the factorial of a given number, multiplying all positive integers up to that number.

Recursive Void Methods

Recursive void methods are functions that call themselves without returning a value, commonly used for tasks that require repetitive actions or to traverse recursive data structures.