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The following information relates to Warden Company. $ Lower Control limit set 1,000 Interest rate per day 0.025% Standard deviation of daily cash flows 500
The following information relates to Warden Company.
$ | |
Lower Control limit set | 1,000 |
Interest rate per day | 0.025% |
Standard deviation of daily cash flows | 500 |
Switching costs per transaction | 20 |
Required:
Using the Miller-Orr model compute:
- The upper limit
- The Return point
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