The Can-Do Company operates 365 days a year. The average cash outflow is $250 a day. The fixed cost of replenishing the cash account is $12 a transaction. The interest rate is 4%. What is the
Optimal initial cash balance?
A) $2,136
B) $5,232
C) $6,809
D) $7,399
E) $7,822
Correct Answer:
Verified
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