Rose Axels faces a smooth annual demand for cash of $8 million; incurs transaction costs of $200 every time they sell marketable securities; and can earn 3.8 percent on their marketable securities. What will be their optimal cash replenishment level?
A) $264,583.03
B) $278,997.38
C) $290,190.50
D) $313,809.26
Correct Answer:
Verified
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