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A firm has estimated that it will need $3,000,000 net cash during the year. Current interest rate on money market securities is 6 percent per

A firm has estimated that it will need $3,000,000 net cash during the year. Current interest rate on money market securities is 6 percent per year and the cost of buying and selling securities cost $50 per transaction. What is the optimal transaction size of securities?

$70,710.68

$25,100.00

$65,285.21

$92,511.11

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