What is the float worth to dell per dollar spent on inputs


Problem

In 2002, Dell Computer made its suppliers wait 37 days on average to be paid for their goods; however, Dell was paid by its customers immediately. Thus, Dell earned interest on this float, the money that it was implicitly borrowing. If Dell can earn an annual interest rate of 4%, what is this float worth to Dell per dollar spent on inputs?

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Microeconomics: What is the float worth to dell per dollar spent on inputs
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