Question: 5. A treasury manager needs to move $100,000 from one corporate account to the firm's primary account. Moving the funds by wire will cost $15

5. A treasury manager needs to move $100,000 from one corporate

5. A treasury manager needs to move $100,000 from one corporate account to the firm's primary account. Moving the funds by wire will cost $15 while moving the funds by ACH will cost $0.30. The wire will clear one day faster than the ACH. The firm receives an earnings credit rate of 0.50% (reserve requirement ratio of 10%) for funds held in all accounts. If the firm's opportunity cost of funds is 6.5%, what is the minimum transfer balance? A. $88,685.95 B. $84,230.77 C. $82,546.15 D. $226.15 5. A treasury manager needs to move $100,000 from one corporate account to the firm's primary account. Moving the funds by wire will cost $15 while moving the funds by ACH will cost $0.30. The wire will clear one day faster than the ACH. The firm receives an earnings credit rate of 0.50% (reserve requirement ratio of 10%) for funds held in all accounts. If the firm's opportunity cost of funds is 6.5%, what is the minimum transfer balance? A. $88,685.95 B. $84,230.77 C. $82,546.15 D. $226.15

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Please show your work for all questions and highlight your final answer, failure to show work will automatically cause question to be counted wrong. Excel documents are not accepted.per assignment...

Use the following monthly information to solve for the total dollar-days of float. Remittances Collection Float $20,000 3 days $15,000 4 days Daysin Month = 30 days Annual opportunity cost of funds =...

A treasury manager needs to move $100.000 from one corporate account to the firm's primary account. Moving the funds by wire will cost $15 while moving the funds by ACH will cost $0.30. The wire will...

A treasury manager needs to move $190,000 from one corporate account to the firm's primary account. Moving the funds by wire will cost $15 while moving the funds by ACH will cost $0.50. The ACH takes...

A treasury manager needs to move $200,000 from one corporate account to the firm's primary account. Moving the funds by wire will cost $15 while moving the funds by ACH will cost $0.45. The ACH takes...

A treasury manager needs to move $200,000 from one corporate account to the firm's primary account. Moving the funds by wire will cost $16 while moving the funds by ACH will cost $0.6. The ACH takes...

If the ledger balance is $750,000 and the collected balance is $550,000, then deposit float is equal to _____. a. $750,000 b. $550,000 c. $200,000 d. -$550,000 3 points QUESTION 2 The XYZ Company has...

Financial management question 3 A treasury manager needs to move $200,000 from one corporate account to the firm's primary account. Moving the funds by wire will cost $15 while moving the funds by...

QUESTION 18 A treasury manager needs to move $100,000 from one corporate account to the firm's primary account. Moving the funds by wire will cost $15 while moving the funds by ACH will cost $0.30....

{fill_regular) and {fill_regular} temperatures. are the most common methods for food preservation at low

You are the manager of the administration department in a small manufacturing company that is fast growing. Your team performs different tasks such as accounting (including payroll), liaison with...

26. LO.6 An exempt organization is considering conducting bingo games on Thursday nights as a way of generating additional revenue to support its exempt purpose. Before doing so, however, the...

Which statement is accurate about the Village Movement?Group of answer choicesA network that was organized to support the elderly in their homes to allow for their independence.This network was...

Understand the impact of institutional factors and labor laws, in particular, on HRM.

In your opinion, why and to what extent could having a B Corp certification help an SME in attracting and retaining skilled and talented workers?

In your opinion, which are the main obstacles that a family-owned SME may encounter in getting a B Corp certification? And what are the facilitating factors? Please answer these questions both in...