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Watkins Resources faces a smooth annual demand for cash of $1.60 million, incurs transaction costs of $85 every time the firm sells marketable securities, and
| Watkins Resources faces a smooth annual demand for cash of $1.60 million, incurs transaction costs of $85 every time the firm sells marketable securities, and can earn 4.7 percent on its marketable securities. |
| What will be its optimal cash replenishment level? (Enter your answer in dollars not in millions. Round your answer to 2 decimal places.) |
| Optimal cash | $ |
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