Scott, the treasury manager of Weiland Inc., will soon transfer $ 1 1 0 , 0 0

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Question:

Scott, the treasury manager of Weiland Inc., will soon transfer $

110, 000

using either a wire or an ACH transfer. Currently, the firm

s bank charges $

15

per wire and $

0.50

per ACH transfer. Since Weiland Inc. is not open on Fridays, Scott is only worried about mid

-

week concentration transfers. Scott believes that the firm

s current annual opportunity cost rate is

4 % .

Weiland Inc.

s lead bank has just offered the firm an earnings credit rate of

0.5 %

on account balances

(

the RRR is

10 %) .

What is the minimum transfer balance that justifies a wire transfer?

Posted Date: May 18, 2024 04:04 PM

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Scott, the treasury manager of Weiland Inc., will soon transfer $ 1 1 0 , 0 0

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