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Your firm needs $185,000 a week to pay bills. The standard deviation of the weekly disbursements is $10,000. The firm has established a lower cash
Your firm needs $185,000 a week to pay bills. The standard deviation of the weekly disbursements is $10,000. The firm has established a lower cash balance limit of $60,000. The applicable interest rate is 6 percent and the fixed cost of transferring funds is $35. Based on the BAT model, what is the optimal initial cash balance? $105,940 $83,693 $46,614 $52,970 $31,782
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