Assume that interaffiliate cash flows are uncorrelated with one another. Assume that each affiliate will have to make all planned payments before it receives any cash. Under a conservative policy, 3 times of S.D. cash for precautionary purpose as the sufficient cash to cover 99.87% of transactions under either decentralized system or centralized system. 1.Calculate the sufficient amount of cash for precautionary purpose 1) by the centralized depository. (8 pes) 2. Calculate the sufficient amount of cash for precautionary purpose if depository system is decentralized. (8 pes) Affiliate U.S. Germany Mexico Japan Expected Receipts $100,000 $150,000 $175,000 $200,000 Expected Disbursements $140,000 $135,000 $125,000 $130,000 Standard Deviation $40,000 $60,000 $30,000 $70,000 Assume that interaffiliate cash flows are uncorrelated with one another. Assume that each affiliate will have to make all planned payments before it receives any cash. Under a conservative policy, 3 times of S.D. cash for precautionary purpose as the sufficient cash to cover 99.87% of transactions under either decentralized system or centralized system. 1.Calculate the sufficient amount of cash for precautionary purpose 1) by the centralized depository. (8 pes) 2. Calculate the sufficient amount of cash for precautionary purpose if depository system is decentralized. (8 pes) Affiliate U.S. Germany Mexico Japan Expected Receipts $100,000 $150,000 $175,000 $200,000 Expected Disbursements $140,000 $135,000 $125,000 $130,000 Standard Deviation $40,000 $60,000 $30,000 $70,000