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the organization believes that it will increase the float on its operating disbursem 634129

An organization has an opportunity to establish a zero balance account system using four different regional banks. The total amount of the maintenance and transfer fees is estimated to be $8,000 per annum. The organization believes that it will increase the float on its operating disbursements by an average of two days, and its cost of short-term funds is 4%. Assuming the organization estimates its average daily operating disbursements to be $80,000, what decision should the organization make regarding this opportunity?

  1. Do not open the zero balance accounts due to the additional cost of $8,000.
  2. Do not open the zero balance accounts due to an excess of costs over benefits of $1,600.
  3. Open the zero balance accounts due to an estimated savings of $1,200.
  4. Open the zero balance accounts due to an estimated savings of $6,200.

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