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Horizon Line has the standard deviation of daily net cash flows of $2,500. The annual interest rate is 8 percent. The trading cost of selling

Horizon Line has the standard deviation of daily net cash flows of $2,500. The annual interest rate is 8 percent. The trading cost of selling or buying security marketable is $650. Suppose that the lower limit of the level of cash is $100, calculate the average cash balance of Horizon Line.

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