Burke Limited has cash outflows of $100 per day, seven days a week. The interest rate is

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Burke Limited has cash outflows of $100 per day, seven days a week. The interest rate is 5 per cent, and the fixed cost of replenishing cash balances is $10 per transaction. What is the optimal initial cash balance? What is the total cost?

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Fundamentals Of Corporate Finance

ISBN: 9781743768051

8th Edition

Authors: Stephen A. Ross, Rowan Trayler, Charles Koh, Gerhard Hambusch, Kristoffer Glover, Randolph W. Westerfield, Bradford D. Jordan

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Question Posted: Oct 04, 2024 02:00 AM

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Burke Limited has cash outflows of $100 per day, seven days a week. The interest rate is

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Fundamentals Of Corporate Finance

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