Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company is currently using an ACH transfer for most of its movement of funds from deposit accounts to its concentration account at a cost

A company is currently using an ACH transfer for most of its movement of funds from deposit accounts to its concentration account at a cost of $1.00 per transfer. A wire transfer option is available at a total cost of $15. If the company's short-term cost of capital is 3.5%, what would be the minimum amount that should be wired during the middle of the week( assume 1 business day speed-up).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Concepts And Methods

Authors: McGraw-Hill

1st Edition

0074701266, 978-0074701263

More Books

Students also viewed these Accounting questions

Question

Determine the energy required to move 240 C through 6 V

Answered: 1 week ago