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

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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