Hotfoot shoes would like to maintain their cash account at, Ask an Expert

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HotFoot Shoes would like to maintain their cash account at a minimum level of $35,000, but expect the standard deviation in net daily cash flows to be $2,000; the effective annual rate on marketable securities to be 5 percent per year; and the trading cost per sale or purchase of marketable securities to be $210 per transaction. What will be their optimal cash return point?

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