a$.$ Your company's Board of Directors has set GHS $50,000$ as the company's lower cash control limit$.$ You ascertain that the interest rate on investment is $0\mathrm{.}025\%$ per day. The company's variance of daily cash flows has been measured as GHS $700.$ Switching cost is GHS $50$ per transaction

i$.$ Calculate the spread.

ii$.$ Calculate the upper limit$.$

iii. Determine the target cash balance. Explain your answer.

b$.$ i$.$ Determine the upper limit for the cash account $($H$)$ if the target cash balance $($Z$)$ is

GHS$40,000$ and the lower limit cash balance $($L$)$ is GHS$10,000.$

ii$.$ Determine the lower limit for the cash account $($L$)$ if the target cash balance $($Z$)$ is

GHS$60,000$ and the upper limit cash balance $($H$)$ is GHS$140,000.$