Green Apple Fruit Farms has a four-day delay in processing and clearing. The daily interest rate is
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Question:
Green Apple Fruit Farms has a four-day delay in processing and clearing. The daily interest rate is 0.23%. On an average day, the firm receives $7,500 in payments. What is the company's float
O a. $15,000
O b. $35,000
O c. $33,000
O d. $30,000
O e. $45,000
Your firm needs $68,000 a week to pay bills. The standard deviation of the weekly disbursements is $9,500. The firm has established a lower cash balance limit of $40,000. The applicable interest rate is 6% and the fixed cost of transferring funds is $20. What is the optimal initial cash balance?
O a. $48,552
O b. $47,117
O c. $43,908
O d. $36,009
O e. $34,332
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