Question
Veggie Burgers, Inc.would like to maintain its cash account at a minimun level of $246,000 but expects the standard deviation in net daily cash flows
Veggie Burgers, Inc.would like to maintain its cash account at a minimun level of $246,000 but expects the standard deviation in net daily cash flows to be $12,100, the effective annual rate on marketable securities to be 4.8 percent per year. and the trading cost per sale or purchase of marketable securities to be $28.00 per transaction. What will be its optimal cash return point? Use 365 days per year. Do not round intermediate calculations and round your answer to 2 decimal places. I came up with 338,224.34 but this is not correct, and neither is 339,308.58 This is the optimal return point and NOT the optimal upper cash limit.
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