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ASTRAL's annual disbursements for 2015 are $4,500,000. They are made at a regular pace throughout...

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Finance

ASTRAL's annual disbursements for 2015 are $4,500,000. They are made at a regular pace throughout the year. ASTRAL invests in short-term Canadian money market treasury bills at an effective rate of 1%. The transaction and management fees attributable to the purchase and sale of investments are estimated at $10. ASTRAL's managers require a minimum cash balance of $150,000. The current cash level of the ASTRAL company is $150,000. The managers of ASTRAL use the Beaumol model to set their cash level. By adopting an optimal cash strategy, ASTRAL could reduce its cash costs from the current situation by :

A. 78,45 $ B. 45,67 $ C. 948,68 $ D. 101,32 $ E. 1050 $

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