Dilly Deli, Inc.
Dilly Deli, Inc., a nation-wide chain of deli-style restaurants, has built a $34,000 balance in one of its regional bank accounts. It wishes to move $30,000 to its main concentration account. A DTC cost $1.50 and requires 3 days to clear; an EDT costs $3.00 but requires only 1 day to clear; and a wire transfer costs $15 and clears the same day. Dilly Deli, Inc. can earn 7% on short term investments.

-Refer to Dilly Deli.Again assume short term investments can earn 7%.What is the minimum amount that needs to be transferred in order to make the wire transfer more cost effective than the EDT?

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Dilly Deli, Inc.
Dilly Deli, Inc., a nation-wide chain of deli-style restaurants, has built a $34,000 balance in one of its regional bank accounts. It wishes to move $30,000 to its main concentration account. A DTC cost $1.50 and requires 3 days to clear; an EDT costs $3.00 but requires only 1 day to clear; and a wire transfer costs $15 and clears the same day. Dilly Deli, Inc. can earn 7% on short term investments.

-Refer to Dilly Deli.Again assume short term investments can earn 7%.What is the minimum amount that needs to be transferred in order to make the wire transfer more cost effective than the EDT?

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The Answer of Dilly Deli, Inc.
Dilly Deli, Inc., a nation-wide chain of deli-style restaurants, has built a $34,000 balance in one of its regional bank accounts. It wishes to move $30,000 to its main concentration account. A DTC cost $1.50 and requires 3 days to clear; an EDT costs $3.00 but requires only 1 day to clear; and a wire transfer costs $15 and clears the same day. Dilly Deli, Inc. can earn 7% on short term investments.

-Refer to Dilly Deli.Again assume short term investments can earn 7%.What is the minimum amount that needs to be transferred in order to make the wire transfer more cost effective than the EDT?

Dilly Deli, Inc. Dilly Deli, Inc., a Nation-Wide Chain of Deli-Style Restaurants, Has