Question: Spreadsheet Problem: Optimal Cash Replenishment Level Watkins Resources faces a smooth annual demand for cash of $1.5 million, incurs transaction costs of $75 every time

Spreadsheet Problem: Optimal Cash Replenishment Level Watkins Resources faces a smooth annual demand for cash of $1.5 million, incurs transaction costs of

$75 every time the firm sells marketable securities, and can earn 3.7 percent on its marketable securities. What will be its optimal cash replenishment level? (LG14-8)

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