FastBucks Has Offered to Set Up a Concentration Banking System

Multiple Choice

FastBucks has offered to set up a concentration banking system that will save 3 days of mail float and 1 day of processing float. Your receivables average $20,000 per day and the opportunity cost of funds is 6%. How much would you be willing to pay FastBucks annually to administer the system perpetually?

A) $2,400
B) $4,800
C) $40,000
D) $80,000