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.
-If the earnings rate for Dilly Deli,Inc.is 3%,which of the following is true?
A) The wire transfer dominates both the DTC and EDT.
B) The wire transfer dominates the EDT but not the DTC.
C) The DTC dominates both the EDT and the wire transfer.
D) The EDT dominates the DTC and the wire transfer.
Correct Answer:
Verified
Q45: $100 million dollar days of float could
Q46: The difference between a lockbox system and
Q47: The primary role of the cash manager
A)
Q48: The Barrell Company is approached by a
Q49: Coyote Valley Products has daily cash collections
Q51: Coyote Valley Products has daily cash collections
Q52: Coyote Valley Products has daily cash collections
Q53: Liquidity management involves
A) earning a positive return
Q54: Coyote Valley Products has daily cash collections
Q55: Currently,a $1 million,91-day T-bill sells at a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents