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

2 months ago

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

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Larae

2 months 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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Selene

28 days ago

I agree, the wire transfer costing $8.00 seems to be the most cost-effective.

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Cecilia

29 days ago

I think the correct ranking is option C) 3, 1, 2, 4.

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Jeniffer

2 months ago

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

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Adelle

2 months ago

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

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Olene

Let's double-check the calculations just to be sure.

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Brigette

3 days ago

I see your point, but I believe option C is more cost-effective overall.

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Jeannetta

19 days ago

But wouldn't option B also make sense? 1, 3, 2, 4

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Kati

20 days ago

I think the correct ranking is option C: 3, 1, 2, 4

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Dorian

2 months 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

2 months 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

2 months ago

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

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Ahmed

2 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

2 months ago

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

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Danica

2 months ago

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

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Linn

2 months ago

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

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Luann

2 months ago

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

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