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

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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?

Reference no: EM131344960

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