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Problem 2 The Seminole Company wishes to apply the Miller-Orr model to manage its cash investment. Seminole's management has determined that the cost of either

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Problem 2 The Seminole Company wishes to apply the Miller-Orr model to manage its cash investment. Seminole's management has determined that the cost of either investing in or selling marketable securities is $200. By looking at Seminole Company's past cash needs, they have determined that the variance of daily cash flows is $10,000. Seminole Company's opportunity cost of cash, per day, is estimated to be 0.05%. Seminole management has figured, based on their experience dealing with the cash flows of the company, that there should be a cushion- a safety stock-of cash of $20,000. 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 cost per transaction? (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 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 lower limit based on the Miller-Orr model of cash management?(Use a number, no decimal value, no commas, no currency, no space) * Your

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