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 $15 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 $15 while moving the funds by ACH will cost $0.45. The ACH takes 1 day longer to clear. The firm's account earns an earnings credit rate of 0.75%, and the required reserve ratio is 10%. If the firm's opportunity cost of funds is 6%, Calculate what is the minimum transfer balance that justifies a wire transfer.

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