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The Bat Model given the following information, calculate the target cash balance using the Bat Model. Annual Interest Rate 12% Fixed order cost $ 100

The Bat Model given the following information, calculate the target cash balance using the Bat Model. Annual Interest Rate 12% Fixed order cost $ 100 Total cash needed $ 2,40,000

Q1. What are the opportunity cost of holding cash, the trading cost and the total cost

Q2. What would be the above cost if $ 15000 were held instead?

Q3. What are your views on the above calculations?

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