Veggie Burgers, Inc. would like to maintain its cash account at a minimum level of $263,000...

Transcribed Image Text:

Veggie Burgers, Inc. would like to maintain its cash account at a minimum level of $263,000 but expects the standard deviation in net daily cash flows to be $13,800, the effective annual rate on marketable securities to be 2.9 percent per year, and the trading cost per sale or purchase of marketable securities to be $36.50 per transaction. What will be its optimal upper cash limit? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.) Optimal upper cash limit Veggie Burgers, Inc. would like to maintain its cash account at a minimum level of $263,000 but expects the standard deviation in net daily cash flows to be $13,800, the effective annual rate on marketable securities to be 2.9 percent per year, and the trading cost per sale or purchase of marketable securities to be $36.50 per transaction. What will be its optimal upper cash limit? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.) Optimal upper cash limit