The Timberline ﬁrm expects a total need of €12,500 over the next 3 months.They have a beginning cash balance of €1,500, and cash is replenished when it hits zero.The ﬁxed cost of selling
Securities to replenish cash balances is €3.50.The interest rate on marketable securities is 8% per
Annum.There is a constant rate of cash disbursement and no cash receipts during the month.
What is the total opportunity cost for a month based on the ﬁrm's current practice?

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The Answer of The Timberline ﬁrm expects a total need of €12,500 over the next 3 months.They have a beginning cash balance of €1,500, and cash is replenished when it hits zero.The ﬁxed cost of selling
Securities to replenish cash balances is €3.50.The interest rate on marketable securities is 8% per
Annum.There is a constant rate of cash disbursement and no cash receipts during the month.
What is the total opportunity cost for a month based on the ﬁrm's current practice?

The Timberline ﬁRm Expects a Total Need of €12,500 Over