Katie's Fabrics Receives 100 Cheques a Day Averaging $24

Katie's Fabrics receives 100 cheques a day averaging $24.50 each. The cheques are from customers located in a two province area. The cheques are deposited in the bank the same day they are received and the funds are available on the following day. Short-term investments are yielding 3.5% annually. The cost of this float is equal to:

A) The average daily float multiplied by twice the annual yield on short-term investments.
B) The number of cheques times the average amount per cheque times the annual yield.
C) The opportunity cost of the net float at a 3.5% rate of interest.
D) The opportunity cost of not being able to utilize the collection float.
E) The net savings from installing a zero-balance account to eliminate the float.