Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Shelly's Spa spends $347,000 a week to pay bills and maintains a lower cash balance limit of $225,000. The standard deviation of the disbursements is
Shelly's Spa spends $347,000 a week to pay bills and maintains a lower cash balance limit of $225,000. The standard deviation of the disbursements is $48,600. The applicable weekly interest rate is 0.042 percent and the fixed cost of transferring funds is $55. What is the hotel's optimal upper cash limit based on the Miller-Orr model?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started