Your firm spends 54000 a week to pay bills and maintains a, Financial Management

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Your firm spends 54000 a week to pay bills and maintains a

Your firm spends $54,000 a week to pay bills and maintains a lower cash balance limit of $45,000. The standard deviation of your disbursements is $12,100. The applicable interest rate is 4.5 percent and the fixed cost of transferring funds is $55. What is your opportunity cost of holding cash based on the BAT model?

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