Rework Problem 15 assuming: a. Wildcat maintains a minimum cash balance of $40 million. b. Wildcat maintains

Question:

Rework Problem 15 assuming:
a. Wildcat maintains a minimum cash balance of $40 million.
b. Wildcat maintains a minimum cash balance of $20 million.
Based on your answers in (a) and (b), do you think the firm can boost its profit by changing its cash management policy? Are there other factors that must be considered as well? Explain.