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The Green Transfer Co

Question 41

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The Green Transfer Co.utilizes a concentration banking system and is determining whether to request wire transfers or depository transfer cheques.What would you suggest, given the following: wire transfer saves three days of float but increases costs by $45.The current interest rate is 10 percent annually.Next year, however, technological changes will occur that reduce the float savings to two days from three, and the incremental costs will be reduced to $35.

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Daily interest savings × number of days ...

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