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Dilly Deli, Inc

Question 50

Multiple Choice

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.

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