In the cash balance model from Example 11.5, is the $250,000 minimum cash balance requirement really costing

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In the cash balance model from Example 11.5, 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.

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Practical Management Science

ISBN: 978-1305250901

5th edition

Authors: Wayne L. Winston, Christian Albright

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