Irene Ent. has an average daily cash outflow of $1,000 and the cost of each transaction is

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Irene Ent. has an average daily cash outflow of $1,000 and the cost of each transaction is $25. The firm currently maintains a cash balance of $60,000 in its account. The annual interest rate on the account is 6%. Using the Baumol model,

calculate the optimal cash balance that the company should maintain. (Assume 360 days make a year)

Related Book For answer-question

Financial and Managerial Accounting the basis for business decisions

ISBN: 978-0078111044

16th edition

Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello

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Posted Date: Apr 18, 2023 04:13 AM

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Irene Ent. has an average daily cash outflow of $1,000 and the cost of each transaction is

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Financial and Managerial Accounting the basis for business decisions

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