Question: The following data have been projected for Limitless Inc. (1) Annual cash requirement of $5,000,000, which will occur uniformly throughout the year. (2) Cost per

The following data have been projected for Limitless Inc. (1) Annual cash requirement of $5,000,000, which will occur uniformly throughout the year. (2) Cost per transaction of $12. (3) Opportunity cost of holding cash is 4%. (4) Use 360 days. Use this data to compute: (a) Optimal cash transfer - 2 pts (b) Average cash balance - 1pt (c) Number of transfers per year - 1pt (d) How often will the company have to transfer? - 1pt (e) Total costs - 3 pts

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