Average daily remittances are $5 million, and "extended disbursement float" adds 3 days to the disbursement schedule, how much should the firm be willing to pay for a cash management system if the firm earns 10% on excess funds.
A) $500,000
B) $1,500,000
C) $1,000,000
D) $0

Is the answer A.. Not sure, but I'm thinking that if there is 5 million, ten percent in excess funds then that would be 500,000 of extrea funds available for cash management. Thanks!

Carly