1. AYA Company has gathered the following data from its Treasury Department at the end of 2013:

Annual cash need in 2013 $ 54 million

Cost per transaction $ 800

ROI on marketable securities 6%

Required:

1. The optimal cash transfer. $_______
2. The average cash transfer. $_______
3. Total cash costs

q1. at the optimal cash balance.

q2. at a $ 2 million denominated cash transfer.

q3. at a $ 200,000 denominated cash transfer.