A. The city has total cash payments of $20 million (T) for a 6-month period....
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Accounting
A. The city has total cash payments of $20 million (T) for a 6-month period. Assume that the payment over this period is steady. The cost per transaction is $60 (b), the interest rate is 3% for the period (i), and the cost per dollar of funds transferred is .05% (v).
Calculate the optimal initial cash balance and transfer size Average cash balance The number of transfers The total cost of cash management
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