The Eliot Co. needs $185,000 a week to pay bills. The standard deviation of the...
60.1K
Verified Solution
Link Copied!
Question
Finance
The Eliot Co. needs $185,000 a week to pay bills. The standard deviation of the weekly disbursements is $17,600.
The firm has established a lower cash balance limit of $75,000. The applicable interest rate is 5.5 percent, and the fixed cost of transferring funds is $47.
Based on the BAT model, what is the optimal initial cash balance?
Please answer step by step. Thanks
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.