Your Cash Manager Is Currently Using Wire Transfer to Obtain

question 93

Multiple Choice

Your cash manager is currently using wire transfer to obtain collections from distant locations each time that the cash accumulates to $50,000.Evaluate the financial logic of this policy if the wire transfer costs $20, saves three days of mail time, and interest rates average 7 percent annually.

• A)Stop the policy; $8.77 is lost with each transfer.
• B)Stop the policy unless the transfer amount is increased to approximately $65,200.
• C)Continue the policy at the current transfer amount.
• D)Improve policy by reducing transfer amount to $34,800.

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Definitions:

Financial Reports

Official records that detail a company's financial performance over a specified period, including income statements, balance sheets, and cash flow statements.

Compressed Work-week

An alternative work schedule that allows employees to work their full required hours within fewer days per week, often resulting in longer daily hours but a shorter workweek.

Flexible Work Schedule

A work arrangement that allows employees to vary their arrival and departure times, as well as choose their work hours, within agreed-upon limits.

Employee Participation Programs

Initiatives that involve employees in decision-making processes, typically to increase engagement, satisfaction, and productivity.