Veggie Burgers, Inc., would like to maintain their cash account at a minimum lev

Question

Veggie Burgers, Inc., would like to maintain their cash account at a minimum level of $200,000; but expect the standard deviation in net daily cash flows to be $1,000; the effective annual rate on marketable securities to be 4.7 percent per year; and the trading cost per sale or purchase of marketable securities to be $27 per transaction. What will be their optimal cash return point? $205,436.90 $211,907.63 $219,003.48 $223,057.14 $205,436.90 $211,907.63 $219,003.48 $223,057.14 $205,436.90 $211,907.63 $219,003.48 $223,057.14

Explanation / Answer

Coorect answer is $205,436.90

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