"7.A manager would like to develop a funds concentration policy for her staff to use to determine when to transfer funds using a wire transfer or an ACH transfer. The pertinent information appears below:

Each wire costs $15

Each ACH transfer costs $0.75

Opportunity cost of funds is 5 percent

Earnings credit rate is 1 percent

Reserve requirement ratio is 10 percent

a.For a mid-week transfer, what is the minimum transfer balance that justifies a wire transfer?

b.For transfers made on Friday, what is the minimum transfer balance that justifies a wire transfer?"