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b. A firm has steady inflows and periodic outflows and wants to use a model to manage its cash. Cash outflows are made every 20
b. A firm has steady inflows and periodic outflows and wants to use a model to manage its cash. Cash outflows are made every 20 days (use a 360 day year). The yield on invested cash is 12.5 percent per year. It cost TK 2500 to invest or disinvest and the amount of next outflow is TK 25 lac. Calculate: i. The optimal no of transactions and amount of periodic investment. i. The net profit from this strategy and model firm used. The amount of final withdrawal. 111. b. A firm has steady inflows and periodic outflows and wants to use a model to manage its cash. Cash outflows are made every 20 days (use a 360 day year). The yield on invested cash is 12.5 percent per year. It cost TK 2500 to invest or disinvest and the amount of next outflow is TK 25 lac. Calculate: i. The optimal no of transactions and amount of periodic investment. i. The net profit from this strategy and model firm used. The amount of final withdrawal. 111
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