AFP Exam CTP Topic 5 Question 7 Discussion

Actual exam question for AFP's CTP exam

Question #: 7
Topic #: 5

[All CTP Questions]

XYZ Company's cash manager is evaluating cash concentration transfer options. The company has an 8% cost of funds and $50,000 in average daily field cash receipts. The wire transfer results in the transfer of funds one day faster. Which of the following options correctly ranks the transfer choices from most cost-effective to least cost-effective?

1. Electronic depository transfer costing $1.00

2. Electronic depository transfer costing $2.50

3. Wire transfer costing $8.00

4. Wire transfer costing $15.00

A1, 2, 3, 4

B1, 3, 2, 4

C3, 1, 2, 4

D3, 4, 1, 2

Show Suggested Answer

Suggested Answer: C

by Salena at Mar 22, 2025, 11:40 AM

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Ahmed

8 days ago

The wire transfer option seems to be the most cost-effective, since it results in the transfer of funds one day faster.

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Luann

10 days ago

I think the most cost-effective option is the electronic depository transfer costing $1.00.

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