Joe's Burgers Would Like to Maintain Their Cash Account at a Minimum

question 64

Multiple Choice

Joe's Burgers would like to maintain their cash account at a minimum level of $300,000, but expects the standard deviation in net daily cash flows to be $20,000; the effective annual rate on marketable securities to be 5.2 percent per year; and the trading cost per sale or purchase of marketable securities to be $22.55 per transaction. What will be their optimal upper cash limit?

• A)$320,000.00
• B)$336,492.68
• C)$409,478.04
• D)$1,009,478.04

---

Definitions:

Binary Search

A searching algorithm that finds the position of a target value within a sorted array by repeatedly dividing in half the portion of the list that could contain the target value.

Divide And Conquer

An algorithm design paradigm based on multi-branched recursion, breaking a problem into smaller parts, solving each part and combining the solutions.

Search Technique

Methods or algorithms used to find specific data or information within a collection, database, or file system.

Sequential Search

Sequential search is a search algorithm that checks each element in a list one by one until the desired element is found or the end of the list is reached.