In the cash balance model from Example 16 5 is the
In the cash balance model from Example 16.5, is the $250,000 minimum cash balance requirement really “costing” the company very much? Answer this by rerunning the simulation with minimum required cash balances of $50,000, $100,000, $150,000, and $200,000. Use the RISKSIMTABLE function to run all simulations at once. Comment on the outputs from these simulations. In particular, comment on whether the company appears to be better off with a lower minimum cash balance.

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
Relevant Tutors available to help