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A firm estimates the variance of daily net cash flows to be $500,000. Short-term investment rates are 1.75%, transaction costs are $100, and annual cash
A firm estimates the variance of daily net cash flows to be $500,000. Short-term investment rates are 1.75%, transaction costs are $100, and annual cash disbursements are $14,709,000. The firm prefers a minimum cash position of $25,000. Using the Miller-Orr model, determine the value for Z", the return point and the Upper Control limit 3F02 Z* = 3 4i Question 28 (1 point) The value for Z is $52,639 $34,213 $9.213 $25,000
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