Question: Suppose an ATM of a community bank dispenses $100,000 per week. Restocking the ATM costs $500. The bank has amazing opportunities for investment, so the
Suppose an ATM of a community bank dispenses $100,000 per week. Restocking the ATM costs $500. The bank has amazing opportunities for investment, so the cost of holding $1 for a year in an ATM is $1. Assume the ATM only gets restocked when it's empty, the lead time to replenish it is negligible, and that a year has 50 weeks.
How much money should be put in the ATM every time it's restocked?
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
To find out how much money should be put in the ATM every time its restocked we can use the Economic ... View full answer

Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock