The treasury manager of BRONCO, Inc. is contemplating whether to transfer funds using a wire transfer or an EDT. The wire will cost $20, and the EDT will cost $0.75. The wire will provide available funds in 1 less day than an EDT. The treasury manager believes that the firm’s current investment opportunity rate is 8%. The firm does not currently earn earnings credits on account balances. Explain what is the minimum transfer balance that justifies a wire transfer.

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In this question the treasury manager of BRONCO Inc needs to decide between a wire transfer that cos... View the full answer