Home Depot receives 50,000 checks per month on average. The average check is worth $130. It typically takes 5 days for each check to clear. The annual interest rate is 1.1%. Wells Fargo Bank has offered to run a lockbox system for Home Depot, which would decrease the average collection period by 2 days. The bank charges an annual fee of $5,000, paid at the beginning of each year of service. What is the average daily float?
