The Eliot Co

question 47

Multiple Choice

The Eliot Co.needs $185,000 a week to pay bills.The standard deviation of the weekly disbursements is $17,600.The firm has established a lower cash balance limit of $75,000.The applicable interest rate is 5.5 percent and the fixed cost of transferring funds is $47.Based on the BAT model,what is the optimal initial cash balance?

• A)$90,668
• B)$97,515
• C)$104,141
• D)$128,224
• E)$136,509

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Definitions:

Floor Space

Floor space refers to the total area available for a particular use within a building or structure, often measured in square feet or meters.