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