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A firm maintains a separate account for cash disbursement. Total disbursement are *1,05,000 per month or 12,60,000 per year. Administrative and transaction cost of transferring

A firm maintains a separate account for cash disbursement. Total disbursement are *1,05,000 per month or 12,60,000 per year. Administrative and transaction cost of transferring cash to disbursement account is 20 per transfer. Marketable securities yield is 8% per annum. DETERMINE the optimum cash balance according to William J. Baumol model

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