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A firm is considering its cash planning based on the following assumptions. Variance of daily cashflows is $1 000 000 . Transaction cost $65 per

A firm is considering its cash planning based on the following assumptions. Variance of daily cashflows is

$1 000 000 . Transaction cost $65 per transaction. Interest rate on deposit 3%.

What is the firm optimal cash balance based on the Miller -Orr Model

$7402

$18 402

$8 402

$15 405

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