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Cash Management. A firm maintains a separate account for cash disbursements. Total disbursements are $100,000 per month, spread evenly over the month. Administrative and transaction

Cash Management. A firm maintains a separate account for cash disbursements. Total disbursements are $100,000 per month, spread evenly over the month. Administrative and transaction costs of transferring cash to the disbursement account are $10 per transfer. Marketable securities yield 1% per month. Determine the size and number of transfers that will minimize the cost of maintaining the special account. (Please show workings).

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