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8 Inventory optimization Suppose that your firm keeps a cash reserve steadily drawn down to pay bills. When it runs out, you replenish the balance

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8 Inventory optimization Suppose that your firm keeps a cash reserve steadily drawn down to pay bills. When it runs out, you replenish the balance by selling T-bills whose interest is 2%. Every sale of bills costs $10. Your firm pays out cash at a rate of $1,000,000 per year. If you apply the above formula, what would be the optimal order size? (19) $42.987 $20,056 $1,000,000 None of the rest is correct

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