1. Use the following monthly information to solve for the total dollar-days of float.

Remittances Collection Float

$20,000 3 days

$15,000 4 days

Daysin Month = 30 days

Annual opportunity cost of funds = 6%

A. $4000

B. $240

C. $7200

D. $120,000

2. 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

3.The Williams Company can convert to ACH disbursing for $20,000. Williams is expected to average a perpetual 5,000 checks per year. ACH disbursing will save Williams 20 cents per payment. Using a discount rate of 10%, what is the minimum number of annual payments required to justify the cost to convert to ACH disbursing?

A. 5,000

B. 10,000

C. 100,000

D. 833