Q1) Slimware is thinking of establishing a zero-balance system for its payroll account. Presently, firm pays its hourly employees every week on late Friday afternoon and puts check for $750,000 in bank to cover payroll each Monday morning. Slimware has find out that checks clear its bank as follows:
Determine annual pretax return to Slimware if firm can earn 9% on any funds released from employing zero-balance system? Suppose company has 52 weekly pay periods each year.