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Your firm utilizes TZS 130,000 a week to pay bills. The standard deviation of these cash flows is TZS 15,000. The fixed cost of transferring

Your firm utilizes TZS 130,000 a week to pay bills. The standard deviation of these cash flows is TZS 15,000. The fixed cost of transferring funds is TZS 51 a transfer. Your firm has established a lower cash balance limit of TZS 80,000. The weekly interest rate is .067%. Use the Miller-Orr model to answer these three questions. a. What is the optimal initial cash balance? b. What is the optimum upper limit? c. What is the average cash balance

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