Clay travel inc routinely funds its checking account to


Clay Travel, Inc. routinely funds its checking account to cover all checks when written. A thorough analysis of its checking account discloses that the firm could maintain an average account balance that is 25% below the current level and adequately cover all checks presented. The average account balance is currently $900,000. If the firm can earn 10% on short-terms investments, what, if any, annual savings would result form maintaining the lower average account balance? 

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Microeconomics: Clay travel inc routinely funds its checking account to
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