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:

Chemical Carcinogen

A substance or agent that can cause cancer by altering cellular metabolism or damaging DNA directly in cells.

Viral Carcinogen

A virus capable of causing cancer by inducing uncontrolled cell growth through the infection of host cells.

Physical Carcinogen

A substance or exposure that physically causes cancer to develop in living tissue.

Familial Carcinogenesis

The process by which cancer is formed, influenced, or increased due to genetic predispositions within families.