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15) Paradise Retailers, Inc. (PRI) determined that $1,500,000 isneeded for cash transactions made during the next year. Each timePRI deposits money in its checking account, a charge of $12.95 isassessed to cover clerical costs. If PRI can hold marketablesecurities that yield 4.5%, and then convert these securities tocash at a cost of only the $12.95 deposit charge, what is theoptimal cash amount C* to transfer from marketable securities tothe checking account according to the Baumol Model? Enter youranswer rounded to two decimal places. Do not enter $ or comma inthe answer box. For example, if your answer is $12,300.456 thenenter as 12300.46 in the answer box.15) Answer=29382.5316) Use the data from problem 15, PRI’s financial managers havenot been following the Baumol Model. Instead, they have beentransferring cash from marketable securities less frequently,namely, transferring cash every 3 weeks. What total cash costincluding holding costs and transactions costs could PRI save bytransferring the optimal cash amount C* rather than this largertransfer amount? Enter your answer rounded to two decimal places.Do not enter $ or comma in the answer box. For example, if youranswer is $12,300.456 then enter as 12300.46 in the answer box.17) Using the data from problem 15, PRI’s financial managers areadjusting their optimal cash amount C* from the Baumol Model torespond to changing market conditions. Interest rates have declinedso that their marketable securities now yield 3.25% and their bankraised its deposit charge from $12.95 to $13.95. By what amountwill PRI’s optimal cash amount C* increase from what you calculatedin problem 15? Enter your answer rounded to two decimal places. Donot enter $ or comma in the answer box. For example, if your answeris $12,300.456 then enter as 12300.46 in the answer box.