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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

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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 year is $200,000. What is the optimal cash transfer amount? $6, 324.55 $5, 325.27 $4, 472.14 $7, 419.46

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