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Problem 1 The management of the Book Warehouse Company wishes to apply the Miller-Orr model to manage its cash investment. They have determined that the

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Problem 1 The management of the Book Warehouse Company wishes to apply the Miller-Orr model to manage its cash investment. They have determined that the cost of either investing in or selling marketable securities is $100. By looking at Book Warehouse's past cash needs, they have determined that the variance of daily cash flows is $20,000. Book Warehouse's opportunity cost of cash, per day, is estimated to be 0.03% Based on experience, management has determined that the cash balance should never fall below $10,000. How much is the lower limit based on the Miller-Orr model of cash management? (Use a number, no decimal value, no commas, no currency, no space) * Your answer How much is the variance of daily cash flows?(Use a number, no decimal value, no commas, no currency, no space) * Your answer How much is the return point based on the Miller-Orr model of cash management? (Use a number, no decimal value, no commas, no currency, no space) * Your answer How much is the upper limit based on the Miller-Orr model of cash management?(Use a number, no decimal value, no commas, no currency, no space) * Your answer How much is the opportunity cost of cash, per day? (Use a number, must be in decimal form. eg. 6.3%/100, encode 0.063, no commas, no currency, no space) * Your answer How much is the cost per transaction?(Use a number, no decimal value, no commas, no currency, no space) * Your

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