The variance of the daily net cash flows for the Tseneg Asian Import Company is ($1.44) million.

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The variance of the daily net cash flows for the Tseneg Asian Import Company is \($1.44\) million. The opportunity cost to the firm of holding cash is 8 percent per year. The fixed cost of buying and selling securities is \($600\) per transaction.

What should the target cash level and upper limit be, if the tolerable lower limit has been established at \($20,000\)?

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