A company has a total of 27 week a year that has cash outflows exceed inflows. For 15 weeks the net outflows are$15,000 and for the second 12 weeks the net flows are $6,000. The company has the same maximum cash balance when it replenishes its cash. That balance is $12,000. The transactions cost to obtain cash is the same for both periods, $22 per transaction. The hurdle return per year is 3.50%. For the 15 weeks is 1.0%. For 12 weeks is 0.8% and for 27 weeks is 1.80%.

1. Is the company following a good strategy? Why do you think so?