Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 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
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started