Your Cash Manager Is Currently Using Wire Transfer to Obtain

question 86

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 3 days of mail time,and interest rates average 7% 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:

National Average

A statistic that represents an average or central value reflecting a condition or attribute throughout a nation.

Surgical Site Infections

Infections that occur after surgery in the part of the body where the surgery took place, posing significant risks for recovery.

Sample Proportion

The ratio of members in a statistical sample that are part of a particular subset of that sample.

National Average

A statistic or measure that represents the average value for a given characteristic across an entire nation.