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The Moon Hotel spends $157,300 a week to pay bills and maintains a lower cash balance limit of $50,000. The standard deviation of the disbursements
The Moon Hotel spends $157,300 a week to pay bills and maintains a lower cash balance limit of $50,000. The standard deviation of the disbursements is $11,307. The applicable weekly interest rate is .043 percent and the fixed cost of transferring funds is $44. What is the optimal upper cash limit based on the Miller-Orr model
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