Question: A company has the same cashflow pattern for 12 months. Cash inflows are R643578 per monthand outflows are R990465 per month. The company can earn

A company has the same cashflow pattern for 12 months. Cash inflows are R643578 per monthand outflows are R990465 per month. The company can earn 5% on marketable securities. Transaction cost incurred every time cash is converted is R65.

By making use of the Baumol model:

Calculate the optimal cash transfer amount to be converted? R

Blank 1. Calculate the answer by read surrounding text.

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