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Given #16 is $6,324.55... MSU's assistant treasurer wants to use the Baumol Model to determine the optimal cash transfer amount The firm develops the following

Given #16 is $6,324.55... image text in transcribed
MSU's assistant treasurer wants to use the Baumol Model to determine the optimal cash transfer amount The firm develops the following parameters an annual opportunity cost is 10%, a fixed cost per securities transaction is $10. and total annual cash needs for the years $200.000, What is the optimal cash transfer amount? a. $6, 324.55 b. $5, 325.27 c. $4.472.14 d. $7, 419.46 Following Question 16, what is the total annual cost (transaction and carrying costs) of the cash position? a. $6, 324.56 b. $3, 162.29 c. $632.46 d. $316.23 Following Question 16, assume that the treasurer wants to use the Miller-Orr Model determine the optimal transfer amount and has developed the following additional parameters: lower ontrol limit = $40,000, upper control limit= $60,000. and variance daily cash flows = $300,000. What should the cash return level be

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