Part B is required here...

Q 5(a) [8 Marks] Doyle Limited is a successful manufacturer of computer accessories. The financial manager of Doyle Limited wants the business to keep a minimum cash balance of 2.400,000 at all times. The manager calculates that keeping this minimum amount of cash will suffice to cover all liquidity purposes, safety purposes, profitability purposes and any potential short-term investment opportunities that may arise. The typical financial transactions fees charged to Doyle Limited, by financial Institutions were on average 280 per transaction. While the interest rate charge on all cash borrowed is currently at 6% per annum, The manager has conducted an analysis of past daily cash flows balances and has concluded that the standard deviation of daily cash balances are 3.400 per day. Q 5(b) [8 Marks] The financial manager of Mannion Limited has noticed that there is a constant excess of cash throughout the year of 1,500,000. The financial manager has discovered that this excess cash could be invested in short-term securities earning 3% per annum. Transactions fees charged by financial institutions are 300 per transaction