Skateboard Ltd., has a standard deviation of daily cash flows of 2,000. The annual (365 days) interest rate is 10.95%.Skateboard Ltd, desires a minimum cash balance of 3,000. The fixed cost of a security transaction is 60. Using an appropriate cash management model, determine:

(i) Skateboards target cash balance; (ii) The upper limit on cash balance; (iii) The average daily cash balance; (iv) The worth of the companys purchase of marketable securities each time the cash balance reaches the upper limit.