1.All Day Cleaning Services is currently holding $690,000 in cash. It projects that over the next year its cash outflows will exceed inflows by $140,000 per month. Each time the company sells securities the broker charges a fee of $250. The annual interest rate on the money market securities it holds is 3.2%.

a.How much of the company's current cash should continue to be held as cash?

b.How much should not be held as cash? And what should the company do with is excess?

c.After the initial investment of excess cash, how many times during the next 12 months will securities be sold to obtain cash?