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 1 day longer to clear The firm's account earns an earnings credit rate of 0 85 , and the required reserve ratio is 10 If the firm's opportunity cost of funds is 4 , what is the minimum transfer balance that justifies a wire transfer a $162,456 65 b $173,755 80 c $149,533 65 d $159,172 93 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 1 day longer to clear The firm's account earns an earnings credit rate of 0 85 , and the required reserve ratio is 10 What is the maximum opportunity cost that makes the treasury manager indifferent between the transfer methods a 3 58 b 3 93 c 2 84 d 4 19

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Question: 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

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 1 day longer to clear. The firm's account earns an earnings credit rate of 0.85%, and the required reserve ratio is 10%. If the firm's opportunity cost of funds is 4%, what is the minimum transfer balance that justifies a wire transfer?

	a.	$162,456.65
	b.	$173,755.80
	c.	$149,533.65
	d.	$159,172.93

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 1 day longer to clear. The firm's account earns an earnings credit rate of 0.85%, and the required reserve ratio is 10%. What is the maximum opportunity cost that makes the treasury manager indifferent between the transfer methods?

	a.	3.58%
	b.	3.93%
	c.	2.84%
	d.	4.19%

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