Tyson Furniture has $100,000 in excess cash that it wants to invest in one or more cash equiva- lents. The treasurer has researched two money market accounts and two certificates of deposit (CDs) offered by four major banks. This is the information she gathered:
The two 90-day certificates of deposit are FDIC insured for up to $100,000. The money market accounts are not FDIC insured.
Suggest how Tyson Furniture might allocate its $100,000 cash among these four opportunities.
Discuss the trade-offs that management must consider.