The Can-Do Company Operates 365 Days a Year

question 370

Multiple Choice

The Can-Do Company operates 365 days a year. The average cash outflow is $250 a day. The fixed cost of replenishing the cash account is $12 a transaction. The interest rate is 4%. What is the optimal initial cash balance?

• A) $2,136
• B) $5,232
• C) $6,809
• D) $7,399
• E) $7,822

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Definitions:

Make Your Mark

An encouragement to leave a lasting and positive impact in one's endeavors or on society.

Contest

A competition where individuals or teams vie for superiority or a prize in a specific area.

Success

The achievement of a set goal, standard, or objective, commonly measured by factors such as profitability, achievement of objectives, or personal fulfillment.

Goodie Bags

Packages filled with gifts, promotional items, or samples, often given to attendees at events or customers as a gesture of appreciation.