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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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Raul

11 days ago

I think the correct ranking is 1, 3, 2, 4 which is option B.

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Larae

12 days ago

Haha, Adelle's got a point. Let's just hope the exam doesn't require us to do any advanced math. I'm more of a word person myself.

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Jeniffer

14 days ago

I believe the wire transfer costing $15.00 is the least cost-effective option.

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Adelle

15 days ago

This question is making my head spin. Can we get a calculator up in here or something?

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Dorian

16 days ago

I agree with Ahmed. The wire transfer options, despite the higher costs, are likely the most cost-effective due to the faster fund transfer.

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Cyril

20 days ago

I'm not sure about that. The electronic depository transfer options seem like they could be more cost-effective, especially the one costing $1.00.

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Glendora

21 days ago

I agree with Luann, the electronic depository transfer at $1.00 seems like the best choice.

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Ahmed

1 months 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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Rory

14 days ago

So the ranking would be 3, 1, 2, 4.

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Danica

16 days ago

I agree, it's worth it to pay a little more for the faster transfer.

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Linn

17 days ago

I think the wire transfer costing $8.00 is the most cost-effective option.

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Luann

1 months ago

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

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