Company spends $47,200 a week to pay bills and maintains a lower cash balance limit...
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Finance
Company spends $47,200 a week to pay bills and maintains a lower cash balance limit of $12,000. The standard deviation of the disbursements is $3,800. The applicable weekly interest rate is .047 percent and the fixed cost of transferring funds is $49. What is the cash balance target based on the MillerOrr model?
a.$38,909
b.$18,731
c.$48,152
d.$47,726
e.$22,413
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