Problemthe abc corporation has cash outflows of 100 per day, Ask an Expert

Accounting

Problem:

The ABC Corporation has cash outflows of $100 per day, seven days a week. The interest rate is 5%, and the fixed cost of replenishing cash balances is $10 per transaction.

Required:

Question: What is the optimal cash balance?

Note: Show supporting computations in good form.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91169908

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