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Allie's Firm spends $372,810 a week to pay bills and maintains a lower cash balance limit of $58,000. The standard deviation of its disbursements is
Allie's Firm spends $372,810 a week to pay bills and maintains a lower cash balance limit of $58,000. The standard deviation of its disbursements is $34,900. The applicable interest rate is 2.48 percent and the fixed cost of transferring funds is $48. What is the optimal average cash balance based on the BAT model? O A) $119,183 O B) $136,970 O C) $127,237 O D) $102,209 E) $138,407
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