Jay's Lumber Supplies earns 2.5 percent on its investment in marketable securities.A draft disbursing system has been proposed that will increase disbursement float by 4 days.Purchases next year are expected to total $18 million.Individual payments average $1,000.Use a 365-day year.
a.If the draft system is adopted,what amount of funds can the firm expect to release during the year?
b.If each issue draft costs the firm $0.30,should the draft system be adopted?
c.Should the firm consider any other factors?

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The Answer of Jay's Lumber Supplies earns 2.5 percent on its investment in marketable securities.A draft disbursing system has been proposed that will increase disbursement float by 4 days.Purchases next year are expected to total $18 million.Individual payments average $1,000.Use a 365-day year.
a.If the draft system is adopted,what amount of funds can the firm expect to release during the year?
b.If each issue draft costs the firm $0.30,should the draft system be adopted?
c.Should the firm consider any other factors?

Jay's Lumber Supplies Earns 2