The Can-Do Company Operates 365 Days a Year

question 304

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:

Witchcraft

A set of beliefs and practices often associated with magical skills and abilities, used in some cultures to explain or influence events.

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A series of fantasy novels written by J.K. Rowling, centered around a young wizard named Harry Potter and his adventures at Hogwarts School of Witchcraft and Wizardry.

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The act of participating in religious services or activities within a church setting.

White Americans

Individuals residing in the United States who identify as being of European, Middle Eastern, or North African descent.