Use the following information to answer the question Variance of net daily cash flows $100,000 The lower cash limit is set at $5,000 Transaction costs are $25 each Rate of return on investments is 8 5 annually Calculate the upper cash limit per the Miller Orr model

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Use the following information to answer the question: Variance of net daily cash flows $100,000 The lower cash limit is set at $5,000 Transaction costs

Use the following information to answer the question:

Variance of net daily cash flows	$100,000
The lower cash limit is set at	$5,000
Transaction costs are	$25 each
Rate of return on investments is 8.5% annually

Calculate the upper cash limit per the Miller-Orr model:

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