Question
Please help me with this one below is the problem and the answer that I got, but when I typed it in they system for
Please help me with this one below is the problem and the answer that I got, but when I typed it in they system for my school says I am wrong.
Veggie Burgers, Inc., would like to maintain its cash account at a minimum level of $265,000 but expects the standard deviation in net daily cash flows to be $14,000, the effective annual rate on marketable securities to be 3.7 percent per year, and the trading cost per sale or purchase of marketable securities to be $37.50 per transaction.
What will be its optimal cash return point?
=(((3*37.5*(14000)^2)/(4*3.7%))^(1/3))+265000
My answer 270301.2989
Please show what I am doing wrong.
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