On an average day, a company writes cheques totaling €1,500.These cheques take 7 days to clear. The company receives cheques totaling €1,800.These cheques take 4 days to clear.The cost of
Debt is 9%.
If the average daily ﬂoat is €3,300, what is the net present value per day?

Question

Quizplus · Accepted Answer

The correct answer is A because the net present value per day is €-0.81. This is calculated by taking the difference between the cost of debt and the average daily float, and then multiplying by the number of days in a year.

On an Average Day, a Company Writes Cheques Totaling €1,500